
Class 
Book 



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Mr. -^ 



(X)P)iiglitN^. 



CfiEUSIGHT DEPOSIT. 



MANAGEMENT OF DAIRY PLANTS 



THE MACMILLAN COMPANY 

NEW YORK ■ BOSTON • CHICAGO • DALLAS 
ATLANTA • SAN FRANCISCO 

MACMILLAN & CO., Limited 

LONDON • BOMBAY • CALCUTTA 
MELBOURNE 

THE MACMILLAN CO. OF CANADA. Ltd. 

TORONTO 



MANAGEMENT OF DAIRY 

PLANTS 



^J BY 

M^^MORTENSEN 

PROFESSOR OF DAIRYING AT IOWA STATE COLLEGE 



THE MACMILLAN COMPANY 
1921 

All rights reserved 






Copyright, ig^i 
By the MACMILLAN COMPANY 



Set up and electrotyped. Published January, iq2I. 



JAN -4 (921 



g)C(.A604853 



PREFACE 

The larger portion of the material presented in this book has 
been collected by the author during the fourteen years while 
he was engaged in commercial dairy work. Much has also been 
obtained from the experience of others. The author has during 
the past ten years taught the subject of creamery management 
to students, and the material presented in this book has been 
given to the students in the form of lectures. 

Acknowledgment is due to Professor F. W. Beckman of the 
Department of Agricultural Journalism of Iowa State College 
for his valuable assistance, particularly with the chapter on 
Advertising, which was largely written by him, also to Pro- 
fessors B. W. Hammer, A. W. Rudnick, and M. R. Tolstrup, 
who have all assisted in this work. 

The author is indebted to the following parties for the use of 
electrotypes and illustrations: Creamery Package Manufac- 
turing Company, Chicago, Illinois; J. G. Cherry Company, 
Cedar Rapids, Iowa; York Manufacturing Company, York, Pa.; 
Vilter Manufacturing Company, Milwaukee, Wisconsin; Madi- 
son Cooper Company, Calcium, N. Y.; National Dairy Council, 
Chicago, lUinois; The Wisconsin Experiment Station, Madison, 
Wisconsin; Kansas Experiment Station, Manhattan, Kansas; 
and the Dairy Division, Department of Agriculture, Washing- 
ton, D. C. 

M. MORTENSEN. 

Iowa State College, 
December, 1920. 



CONTENTS 

Chapter Page 

I. Preliminary Survey of Conditions i 

11. Form of Organization 1 1 

Copartnership 1 1 

Corporation i4 

Mutual Cooperative Creamery Association i8 

Joint-stock Company 21 

III. Creamery Construction 24 

Floor Plan 24 

Foundations, Walls and Brickwork 3° 

Roofs 36 

Painting 37 

Ventilation 3^ 

IV. Sewage Disposal 4° 

Sewer System 40 

Cesspool 43 

Septic Tank 44 

V. Refrigeration 49 

Insulation 49 

Systems of Refrigeration S^ 

Natural Refrigeration S8 

VI. Mechanical Refrigeration 68 

General Discussion 68 

Compression System 69 

Absorption System 81 

VII. Labor 84 

Organizing a Strong Working Force 84 

Paying for Labor 92 

VIII. Purchase of Milk and Cream 100 

System of Dealing with Patrons 100 

Systems of Milk and Cream Purchase and Delivery 108 

IX. Purchasing Equipment and Supplies 123 

The Buyer 123 

How to Buy 125 

Records 126 

vii 



Vlll CONTENTS 

Chapter Page 

X. Cost of Power 131 

Steam Power 131 

Gasoline for Power 140 

Kerosene for Power 141 

Electric Power 141 

XI. Pasteurization 143 

A. Cost of Pasteurization 143 

B. The Economic Efl&ciency of Pasteurizing Machinery. . . . 150 
XII. Cost of Water 158 

A. Power Required for Pumping Water 158 

B. Water Pumps 160 

C. Economy in Pumping Water at the Creamery 162 

XIII. Rent, Depreciation, Interest, and Insurance 163 

A. Rent 164 

B. Depreciation 165 

C. Interest 165 

D. Insurance 163 

XIV. The Butter Overrun and the Relation between Chemical Com- 

position of Butter and Overrun 168 

The Butter Overrun 168 

Relation between Chemical Composition of Butter and 

Overrun 170 

XV. Mechanical Losses and Their Influence on Butter Overrun. . . . i8i 

Losses that Occur during the Manufacturing Process 181 

Losses Due to Inaccuracy in Weighing and Testing 188 

Per Cent Overrun which may be Legally Obtained 195 

XVI. Cost of Manufacturing Butter 198 

XVII. Profits Obtained from the Manufacture of Ice Cream 203 

A. Cost of Material 203 

B. Yield of Ice Cream 218 

C. General Expenses in Manufacturing Ice Cream 221 

XVIII. Marketing of Dairy Products 226 

A. Salesmanship 226 

B. Methods of Marketing 231 

C. Office Records 237 

XIX. Cost of Marketing Dairy Products 245 

A. Cost of Marketing Butter 245 

B. Cost of Marketing Cheese v 253 

C. Cost of Marketing Ice Cream 254 

D. Cost of Marketing Milk and Cream 258 



CONTENTS 



IX 



Chapter Page 
XX. Preparing the Butter for Market 272 

A. Butter Packages 272 

B. Packing the Butter 277 

XXI. Advertising Dairy Products 281 

The Purposes of Advertising 282 

Essentials in Creamery Advertising 287 

Mediums for Creamery Advertising 294 

Planning and Writing the Advertisement 299 

XXII. Business Correspondence 309 

A. The Appearance of Letter 309 

B. Parts of a Letter 312 

C. The Form Letter 317 

D. Filing of Correspondence. 318 

XXIII. Credits and Collections 319 

A. The Credit Man 319 

B. Fact upon which the Credit Man Bases his Judgment. . . 320 

C. Office Records of Credit Information 323 

D. Collections 325 

XXIV. Creamery Bookkeeping 332 

A. Definition and General Information 332 

B. Record of Purchases 335 

C. Record of Sales 341 

D. Record of Inventory 342 

E. Profit and Loss 345 



LIST OF ILLUSTRATIONS 

Page 
Fig. I.— Large windows in front expose the interior of the factory to 

the view of passers-by 25 

PiQ 2. — The arrangement of the creamery is influenced by the loca- 
tion of the railroad track 27 

YiG. 3. — A well-arranged floor plan for a small creamery 29 

Fig. 4. — Details of construction 32 

Fig. 5. — A sewer system that is readily cleaned 4° 

Fig. 6.— Bell trap 4i 

Fig. 7. — Siphon trap 42 

Fig. 8.— Catch basin 43 

Fig. 9. — Sections showing the construction of a septic tank 47 

Fig. 10. — Sections of insulated walls by Ruddick 55 

Fig. 1 1 . — Section showing construction of floor and wall insulated with 

cork or lith 57 

Fig. 12. — Section showing perfect air circulation in an ice bunker refrig- 
erator 59 

Fig. 13. — Insulated ice house ^^ 

Fig. 14.— The Cooper gravity brine system and chloride of calcium 

process "3 

Fig. 15. — Method of connecting refrigerating systems 71 

Fig. 16. — York single-acting ammonia compressor 74 

Fig. 17. — Vilter double-acting ammonia compressor 75 

Fig. 18. — An atmospheric ammonia condenser 77 

Fig. 19. — A double-pipe ammonia condenser 79 

Fig. 20. — System for artificial ice making 82 

Fig. 21. — Map of the territory i°5 

Fig. 22. — Midget vest pocket press m 

YiG. 23. — Plant equipped with water-heating apparatus i39 

Pjg. 24.— Pasteurizer with the Danish Experiment Station Improve- 
ments ^54 

Fig. 25. — Reading a butter-fat test ^94 

Fig. 26. — Storing butter 251 

Fig. 27. — Public weigh-house, Alkmar, Holland 252 

xi 



Xll LIST OF ILLUSTRATIONS 

Page 

Fig, 28. — Wisconsin cheddar cheese production, 191 1 255 

Fig. 29. — Cheddar cheese shipments from Wise, 191 1 255 

Fig. 30. — Total expense of milk distribution per quart 263 

Fig. 31 . — Percentages of total costs per quart by size of total business. . . 263 

Fig. 32. — A refrigerator butter carrier 273 

Fig. 33. — A butter tub paraffiner 273 

Fig. 34. — Advertising the food value of dairy products 285 

Fig. 35. — Advertising the food value of dairy products 285 

Fig. 36.— a well-designed trade-mark 290 



LIST OF FORMS 

Page 

Form I. — Application for Position as Buttermaker 85 

Form II. — Information Blank 86 

Form III.— Creamery Productive Labor Cost Record 95 

Form IV.— Creamery Proportioned Yearly Labor Recor.d 99 

Form V. — Creamery Field Record 106 

Fovm VI. — Monthly Record of Patrons lo? 

Form VII. — Receiving Clerk's Can Record 112 

Form VIII.^ — Daily Cream Receiving Record 113 

Form IX. — Driver's Report 118 

Form X.— Route-Checking Record 119 

Form XL— Station Report 121 

Form XII. — Creamery Order for Supplies 128 

Form XIIL— Inventory of Supplies 129 

Form XIV. — Kind of Supplies 130 

Form XV.— Insurance Record 167 

Form XVL— Churn Record 189 

Form XVIL— Daily Cost Record and Manufacturing Report 202 

Form XVIIL— Ice Cream Manufacturing Report Showing Cost of 

Material Used Per Gallon of Ice Cream Manufactured 222 

Form XIX.— Ice Cream Shipping Tag 225 

Form XX.— Report Card on Prospective Customers 238 

Form XXL— Sales Ticket 239 

Form XXIL— Invoice 240 

Form XXIIL— Statement 241 

Form XXIV.— Patrons' Sales Ticket 242 

Form XXV. — Record of Consignments 243 

Form XXVL— Route Sheet 244 

Form XXVIa.— Daily Balance Sheet 270 

Form XXVIL— The Order Clerk's Credit Card 32S 

Form XXVIIa.— A Bank Draft 33° 

Form XXVIIL— Sight Drafts 33° 

Form XXIX.— A Time Draft 33i 

Form XXX.— Debit Ledger 333 

xiii 



XIV LIST OF FORMS 

Page 

Form XXXI. — Cash Record 334 

Form XXXII. — Check Register 336 

Form XXXIII. — Patrons' Statement and Check 337 

Form XXXIV. — Itemized Record of Purchases 338 

Form XXXV. — Purchase Record 340 

Form XXXVI. — Sales Record 343 

Form XXXVII. — Butter Department — Inventory 344 

Form XXXVIII.— Stock Record 345 

Form XXXIX. — Ice Cream Inventory 346 

Form XL. — Manufacturing and Inventory Record 347 

Form XLI. — Statement of Profit and Loss for May 348 

Form XLII. — Ice Cream 349 

Form XLIII. — Financial Statement 350 



LIST OF TABLES 

Page 
Table I. — ^Transmission of Heat Through Various Insulating 

Structures 52 

Table II. — ^Table of High Test Chloride Calcium Solutions 73 

Table III. — Composition of Fuels 132 

Table IV. — Quantity of Fuel Saved by Heating Feed Water. . . . 136 

Table V. — Cost of Power 137 

Table VI. — Densities and Specific Volumes of Water 145 

Table VII. — Table for Determining Friction Loss 160 

Table VIII. — Table Giving Value of Overnm per Pound of Butter 

and per Pound of Butter Fat 171 

Table IX. — Table Giving Value of Overrun per Pound of Butter 

and per pound of Butter Fat 172 

Table X. — Table Illustrating How the Fat Content of the Result- 

ing Butter Influences the Reduction in per cent of 

Overrun 184 

Table XL— Table Illustratmg How the Fat Content of the Whole 

Milk Influences the Reduction in Overrun 184 

Table XII. — Table Illustrating How the Fat Content of Resulting 

Cream Influences the Reduction in Overrun 185 

Table XIII. — Table Illustrating How the Fat Content of Resulting 

Butter Influences the Reduction in Overrun 187 

Table XIV. — ^Table Illustrating How the Fat Content of Cream In- 
fluences the Reduction in Overrun 187 

Table XV. — Illustration of the Financial Loss Sustained by a 

Creamery Taking Composite Samples 192 

Table XVI. — Influence of Temperature on Reading of Test 193 

Table XVIL— Who Gets the Money? 199 

Table XVIII. — What it Costs to Make and Market Kansas Creamery 

Butter 200 

Table XIX. — Comparison of the Official Creamery Butter Grades of 

Different Wholesale Trade Organizations 246 

Table XX. — A Comparison of Prices at Which Different Grades of 
Butter and Butter Substitutes Were Sold in New York, 
Philadelphia, Chicago, St. Paul, and Minneapolis 249 

XV 



XVi LIST OF TABLES 

Page 
Table XXI. — Comparison of Quality (x\verage Score) and Average 

Retail Price of Branded and Unbranded Butter 250 

Table XXII, — Labor Cost For Filling and Capping Milk Bottles 259 

Table XXIII. — Table Showing Time Required for Filling and Capping. 260 
Table XXIV. — Percentages of Total Cost per Quart of Wholesale and 

Retail Milk (Eighty Plants), by Size of Character of 

Business 264 

Table XXV. — Table Showing Cost of Handling Milk in American 

Cities 265 



MANAGEMENT OF DAIRY PLANTS 



MANAGEMENT OF DAIRY 
PLANTS 

CHAPTER I 

PRELIMINARY SURVEY OF CONDITIONS 

A CREAMERY may be owned and controlled by an individual, 
a closed stock company, or it may be controlled by the people 
of the entire community; but regardless of its prospective form 
of organization, certain factors which will largely determine the 
success or failure of the enterprise should be considered in its 
undertaking. These are: 

1. Nature of business. 

2. Raw material available. 

3. Competition. 

4. Amount of money required. 

5. Banking facilities. 

6. Amount of rural business handled by the town. 

7. Attitude of the community toward the undertaking. 

8. Railroad facilities. 

9. Suitability of site and building. 
10. Competence in the manager. 

Nature of Business. — Formerly the creamery business was 
confined strictly to butter making, but now several side lines 
are often included, such as ice cream making and cheese making. 
A creamery receiving milk, either exclusively or in part, may 
find it advantageous to manufacture cheese from all or from a 
portion of it. Some creameries handle eggs at a profit. It is 
even claimed that a laundry may be operated profitably in con- 
nection with a creamery. It may be operated at a profit; but, 
for sanitary reasons, a laundry seems hardly proper as a side 

I 



2 MANAGEMENT OF DAIRY PLANTS 

line as a coordinate feature of the creamery. If operated by 
common power, the laundry should be separated from the 
creamery by a solid wall and the workers in one place should 
take no part in the operations of the other place. 

The market facilities will naturally play a big part in deter- 
mining the nature of the business. If a creamery is located in 
a thriving town or in a city, ice cream making would naturally 
fit in with butter making. Special demands may be created for 
soft cheese. A retail business may be started to advantage. 
In a number of cities, creameries are selling, at retail, all the 
products they manufacture. 

Although some or perhaps all of such side lines should be 
taken up gradually only after the business has been established, 
yet there should be a fair survey of such opportunities at the 
outset, as these will often largely determine the advisability of 
starting a creamery. 

Raw Material Available. — Considering Iowa conditions, a 
creamery located in the country or in a small town and not de- 
pending on local markets for the sale of its products, nor placing 
any dependence on side lines, should receive cream or milk from 
not less than 600 cow^s.^ If working with less, the operating 
expenses are too great and such a creamery is unable to com- 
pete with a strong rival. Farrington and Benkendorf 2 estimate 
for Wisconsin that there should be at least 400 cows for a cream- 
ery and 200 cows for a cheese factory, with a good prospect of 
increasing this number in the near future. 

As an illustration, consider two creameries, one receiving the 
raw material from 400 cows, the other receiving the raw mate- 
rial from 800 cows. Assume that these creameries are handling 
only gathered cream, that the entire amount of butter fat pro- 
duced by the cows is sold to the creamery, and that each cow 
produces 140 pounds of butter fat annually. Also take for 
granted that the price paid by each creamery for butter fat 
delivered at its plant is not less than the New York quotation 
for extras, and that the butter is sold on commission at one 
cent per pound in excess of the price paid for butter fat. The 

' Bui, 139. la. Agr. Expt. Sta., 1913. - Bui. 244, Wis. Agr. Expt. Sta., 1915. 



PRELIMINARY SURVEY OF CONDITIONS 3 

average yearly selling price of the butter is estimated at 27 
cents per pound. The overrun is figured at 20 per cent. 

Daily Statement of Creamery No. i ^ 
400 cows produce yearly 56,000 lbs. butter fat. 
400 cows produce daily 155.5 lbs. butter fat. 
155.5 lbs. butter fat produce 186.6 lbs. butter. 

Disbursements 

155.5 lbs. butter fat at 26 cents $40.43 

Butter maker's salary at $100 per month 3.33 

Tubs, salt, color, etc 1.20 

100 lbs. skim milk for starter .50 

Coal and ice i .00 

Drayage .25 

Miscellaneous expenses .50 

8 per cent interest on a $4,000 investment .89 

Annual depreciation of 10 per cent i.ii 

Freight on 186 lbs. butter at i cent per lb 1.86 

Commission of 5 per cent on 186.6 lbs. butter at 27 cents.. 2.52 



$53-59 
Credits 

186.6 lbs. butter at 27 cents $50.38 

500 lbs. buttermilk at 10 cents per cwt .50 

50.88 

Daily Loss $ 2.71 

Daily Statement of Creamery No. 2 

800 cows produce yearly 112,000 lbs. butter fat. 
800 cows produce daily 311.1 lbs. butter fat. 
3 II. I lbs. butter fat produce 373.3 lbs. butter. 

, Disbursements ^ 

311. 1 lbs. butter fat at 26 cents $80.88 

Butter maker's salary at $125 4.16 

Tubs, salt, color, etc 2.40 

200 lbs. skim milk for starter i .00 

Coal and ice i .20 

Drayage .25 

1 Estimates made under pre-war conditions. 



4 MANAGEMENT OF DAIRY PLANTS 

Miscellaneous expenses $ .50 

8 per cent interest on a $4,000 investment .89 

Annual depreciation of 10 per cent i.ii 

Freight on 373.3 lbs. butter at i cent per lb 3.73 

Commission of 5 per cent on 373.3 lbs. butter at 27 cents. . . 5.04 



$101.16 

Credits 

373.3 lbs. butter at 27 cents $100.79 

1,000 lbs. buttermilk at 10 cents per cwt i.oo $101.79 

Total Profit 0.63 

From the above it is evident that a creamery receiving the 
cream from only 400 cows will not be able to pay for butter fat 
within one cent of the price received for its butter. When 
meeting competition from a larger plant, its strength will be 
reduced. It also appears as if Creamery No. 2 should be able 
to pay for butter fat within a fraction of a cent of the price it 
receives for butter. 

In using the above tables, however, it should be considered 
that a certain amount of milk and cream will be used on the 
farm. In reality, therefore, if the stockholders sign up for 800 
cows, we should not depend on receiving the cream from more 
than 600 cows. 

Competition. — Competition should be considered in the 
purchase of raw material as well as in the sale of finished product. 
In the matter of purchase, study the character of the competi- 
tion, the methods adopted by competitors, the nature of their 
business, their costs for collecting raw material and for produc- 
ing finished output, and their facilities for marketing. If the 
competitor is a man of clean habits and of sound business prin- 
ciples, then he will have the best people of the community work- 
ing with him. If he is less honest in his dealings, his competi- 
tion may be disagreeable for a time but will eventually lose out 
against a strong rival. A proprietary plant cannot prosper in 
the same town where a successful cooperative creamery is in 



PRELIMINARY SURVEY OF CONDITIONS S 

operation. The cream-receiving station is usually operated at 
such an expense and the cream collected there is of such poor 
quality that its competition seldom wins great strength against 
a local cooperative plant. But it should always be considered 
that a competing firm, regardless of its nature, will, while it 
lasts, receive at least a share of the business. 

A cooperative creamery may be organized and operated in 
any community if the stockholders represent enough cows. A 
proprietary plant should seldom, if ever, be established in a 
territory surrounded by strong competitors, for under other- 
wise equal conditions the younger firm is at a disadvantage. 

It is rather unusual for a smaller plant to establish a local 
market for its butter; but if it does, it should know about its 
competitors who sell goods on the same market, their selling 
prices, quality of goods, cost of delivery, credit systems, and 
special concessions offered to their dealers. 

Amount of Money Required. — The money needed to start 
and carry on a creamery business includes the amounts neces- 
sary for building, equipment, and working capital. 

The building may be rented. This is the mode frequently 
adopted when starting in cities, especially by people who have 
only limited means, and while the business is yet in its experi- 
mental stage. A storeroom is often fitted up at small cost and 
the principal investment consists of such machinery as may be 
readily converted into cash in case of failure. A new creamery 
building large enough to make i,ooo pounds of butter daily 
when only cream is received may be built and equipped for 
from $4,000 to $5,000, while a creamery with a capacity of 2,000 
pounds of butter daily, including a six-ton compressor, can be 
built and equipped for from $8,000 to $10,000.^ 

In addition to the building and equipment, a working capital 
is required. By working capital is understood the margin of 
quick assets over current liabilities. Quick assets are those 
which can readily be turned into cash, such as good accounts, 
good receivable bills, marketable notes, and securities. Further- 
more, in the creamery business we can include under this head 

1 Estimates made under pre-war conditions. 



6 MANAGEMENT OF DAIRY PLANTS 

inventories of raw material as well as of finished product; also, 
such supplies as tubs, salt, butter color, etc. However, butter 
wrappers, cartons, or other articles marked with a particular 
trade-mark and which could, therefore, not be sold readily to 
other factories should not be considered under the head of 
quick assets. 

The amount of money required for working capital depends 
mainly on the amount of business, method of paying for cream, 
time of credit on supplies, amount of supplies carried on hand, 
terms of credit to customers, and promptness in collecting out- 
standing accounts, and, finally, on the amount of stock kept on 
hand either in the form of finished products or as products in 
process of manufacture. 

Where the raw material is bought on time and the finished 
product is sold for cash or on a commission basis, only a small 
working capital is required. Some cooperative creameries con- 
duct their business on this basis, paying monthly or semimonthly 
for the raw material and selling their butter on consignment. 
In such cases the company often makes out a sight draft, with 
bill of lading, for two thirds the value of the butter shipped. 
This draft is then sent through the bank, and the company's 
account there is generally credited with the amount at the time 
of deposit. If, however, a system is adopted by which the raw 
material is bought on cash basis and the finished product sold 
on two weeks' time, then the company will need sufficient cap- 
ital to pay in advance for the month's supply of cream and sup- 
plies needed. This is because the butter fat remains unsold in 
the creamery for several days in the form of cream or butter. 
Moreover some of the outstanding credit accounts will not be 
collected even w^ithin three or four weeks after sale of butter. 

Banking Facilities. — Due consideration should be given 
both to the financial responsibility and to the authorized capital 
stock of the bank from which the creamery enterprise must 
make loans. National banks by law are required to limit their 
loans to one concern to 20 per cent of the bank's authorized 
capital and surplus. A creamery transacting a big business 
and buying its raw material for cash may often during the 



PRELIMINARY SURVEY OF CONDITIONS 7 

summer months need to borrow more money than the smaller 
banks are able to furnish. 

Amount of Rural Business Transacted in the Town. — To 
a local proprietary creamery it is of importance that the farmers 
from the surrounding territory do their trading in the town in 
which the creamery is located. The greater the territory the 
town draws trade from, the better patronage the creamery will 
receive, as farmers usually sell their cream where they do their 
buying. It has also the advantage of enabling the creamery 
man to meet more of his patrons and thereby to come in closer 
touch with them. 

For the cooperative and the central creamery this factor is 
of less importance. In the former case, farmers deliver their 
cream where they are financially interested. In the latter case, 
the central plant generally prefers to locate in some city where 
other opportunities of greater importance are afforded. Such 
concerns do not cater particularly to local producers, but de- 
pend on raw material being shipped to them from long dis- 
tances. 

Attitude of the Community Toward the Undertaking. — 
Unless both the producers and the people of the town manifest 
a reasonable amount of interest in the creamery undertaking 
it will be more or less of an experiment as to outcome. A co- 
operative creamery may be successful without the support of 
the people of the town, but a proprietary plant should have 
the support of both country and town people. 

If the people do not manifest any interest or if they show 
unwillingness to support the local creamery, such indifference 
or even unfriendliness may usually be traced to one or more of 
the following causes: First, the people have had unpleasant 
experiences with former local creameries; or, second, they con- 
sider the men at the head of the undertaking as undesirable 
persons with whom to do business; or, third, the community 
as a whole is rather pessimistic and lacking in cooperative spirit. 
Any one of these factors is well worth considering. Although 
a manager may win out eventually in spite of it all, yet the 
business will have proved more expensi\x by the time it is put 



8 MANAGEMENT OF DAIRY PLANTS 

on a profitable working basis than in the case of the creamery 
which receives the support of its local people in starting. 

A community of townspeople and farmers may often indi- 
cate its good will toward such a project by offering a bonus to 
the promoter. This usually consists of a building site or even 
offer to pay part of the building costs. Such an offer is of much 
value as an evidence of local friendliness; but as the bonus is, 
of course, always in lieu of certain specified conditions, to ac- 
cept it may hamper future success more than the bonus will 
compensate. The creamery company as a rule will do better to 
buy its own site and erect its own building, thereby keeping 
greater independence and increasing its prestige in the com- 
munity. 

Railroad Facilities. — A central plant should be located in 
a city with more than one railroad. The more railroads lead- 
ing to the city, the larger the region to draw from and the more 
thoroughly the immediately surrounding territory is made avail- 
able to the creamery. A large plant also markets its own prod- 
ucts, and it is therefore an advantage to be directly connected 
with a larger number of towns and cities. This factor should 
not be disregarded by the smaller plants, for many of them 
might advantageously dispose of their products to near-by 
dealers. 

Suitability of Site and Building. — In determining the lo- 
cation and housing of a creamery give thorough consideration 
to sanitation, convenience, and business advantages. 

I. Location with Reference to Sanitation. — The surroundings 
of a creamery should be sanitary. Good facilities for drainage 
are essential. A creamery should never be located close to 
barns or places where offensive odors are prevalent, or to places 
which are natural breeding grounds for flies. It is advisable to 
provide room for a septic tank large enough to handle the sew- 
age from the creamery. A sufficient supply of good water should 
be available. 

If a building formerly utilized for other purposes is secured, 
it should be so located and constructed that it can readily be 
put into a suitable and sanitary condition without too great 



PRELIMINARY SURVEY OF CONDITIONS Q 

expense. The floors will usually have to be replaced with ce- 
ment floors; the walls should be smooth, preferably cemented 
with smooth, hard, cement plaster, or at any rate they should 
be thoroughly renovated and painted or whitewashed. There 
should be plenty of windows, and the building should permit 
of easy ventilation. 

2. Location with Reference to Convenience. — If the creamery 
is in a city, it should be so located that at least one side and 
one end of the building face a street or an alley. If located in 
the center of a block it will be inconvenient for shipping and 
the amount of sunlight available will be insufficient. A cream- 
ery should not be located in the principal retail portion of the 
city, as those streets are crowded with people and the sidewalks 
cannot be used for shipping so readily as in districts less crowded. 
In smaller towns this factor will not deserve so much consid- 
eration. 

A location adjoining a railroad track is of advantage to a 
creamery doing a large business, but for the smaller plant in a 
small town the railroad track is of less value. It may even be a 
disadvantage, inasmuch as patrons delivering their own milk 
or cream will consider the trains a source of danger. Where 
farmers deliver their products to the creamery, the location is 
most convenient if near the center of town. But if, for other 
reasons, the creamery must be located inconveniently for these 
deliveries, patronage will often be secured by establishing cream- 
receiving stations near the trading centers. ^ 

3. Location with Reference to Business Advantage. — Cream- 
receiving stations are located at business centers, not merely 
for the sake of convenience, but also for advertising advantages 
which are perhaps of equal importance. The creamery itself, 
if located in the main portion of a town, is thus better adver- 
tised. In such a building the front windows should be large 
enough for the passer-by to obtain a fair view of the entire plant. 
In larger cities, small creameries are at times located^ in the 
retail districts, but they should be so placed that shipping will 

1 This is to be recommended only for such places where other creameries collect 
through stations. 



lO MANAGEMENT OF DAIRY PLANTS 

be taken care of from the back part of the creamery through 
the alley. 

Competence of the Manager. — Managers competent to 
operate a large creamery are scarce. The successful manager 
should have had general business experience, and preference 
should be given to one who has also had practical creamery ex- 
perience. A company should thoroughly investigate the past 
record of the man under consideration for this position. 

The manager should be honest and broad-minded. He should 
be fair in his dealings with everybody. The manager should be 
clean in habits. One who is addicted to liquor cannot be trusted 
at all times nor can he render his employers the best service. 

The creamery manager should have a discerning mind. He 
must be able to judge the men with whom he has business deal- 
ings and also the meli he employs. He should recognize the 
limitations as well as the possibilities of his employees. 

He should be an organizer. He must be able not only to es- 
tablish a superior working system in factory, field, and office, 
but along with this he must also organize a working force which 
can carry out his ideas without friction, each member becoming 
a useful link in the entire chain of the organization. He should 
be a good executive. As such he must be a man of punctuaHty 
and perseverance, able to gain the confidence of his employees, 
and at the same time obtain efficient and economic service from 
them. 

He should have had at least a fair technical training in the 
manufacture of those products which his factory is to handle. 

He shou]d be a money-maker. The success of a business 
enterprise is largely measured by its financial success. A man 
that can be expected to make money for the company is sup- 
posed to be able to save for himself. Nevertheless, some men 
do make money for their employers while spending their own 
earnings as soon as received. The ability of a man to save is, 
however, a good guide when engaging a creamery manager. 



CHAPTER II 

FORM OF ORGANIZATION 

The simplest and oldest form of business ownership is that 
by the individual. As long as one person owns and operates a 
business, its organization is very simple. All business transac- 
tions with this individually owned concern will be directly with 
the owner or his agent. Should this person, however, take one 
or more partners, then an organization known as a copartner- 
ship is formed. 

COPARTNERSHIP 

A partnership is an association founded upon a contract be- 
tween two or more competent persons for joining their money, 
goods, labor, and skill, or any or all of these, for the purpose of 
carrying on a legal trade or business, with the understanding 
tha^there shall be a communion of profit among such partners. 

Partnerships are of two kinds — general and limited. A gen- 
eral partnership is the most common form and is an association 
of two or more parties who agree to enter into a specified busi- 
ness without fixing limitations. A limited partnership is an 
association of parties for some of whom liability is limited. 
This latter form of partnership is allowed in some states, but is 
rarely organized, and is now largely supplanted by the corpora- 
tion. A limited partnership is usually required to file in some 
public office a certificate showing its membership, the purpose 
for which organized, its total capital, its assets, and the number 
of shares held by special partners. 

How a Partnership is Formed. — A partnership may be 
formed by a written agreement. Such an agreement should 
specify the names and duties of each partner, the purpose for 
which the partnership is created, the amount of money invested 
by each, how the partners will share in profits and losses, form 

II 



12 MANAGEMENT OF DAIRY PLANTS 

of bookkeeping records, duration of the company, and other 
special provisions. 

A verbal agreement is sufficient for creating a partnership, 
but in the absence of a written agreement the law assumes that 
partners share profits and losses equally. 

Who May Be Partners. — All legally competent persons 
may enter into a partnership. Insanity, idiocy, or habitual 
drunkenness disqualifies persons from becoming partners. 

A minor may enter into a partnership, but contracts by him 
are voidable and he cannot be held for partnership liability. 
The minor, when he comes of age, or before, has the further 
privilege of renouncing his connection with the company and 
of disaffirming past transactions if he chooses. If, however, he 
remains connected with the company a reasonable length of 
time after coming of age, the law assumes that he i, a legal 
partner. 

Classes of Partners. — According to their responsibilities, 
partners may be designated as: 

1. Ostensible Partner, the real partner; that is, the one known 
to the world as a partner. 

2. Dormant Partner, the silent partner; that is, not known 
to the world as a partner but partaking of profits. He can 
sever his connection with the company without giving public 
notice of the same and is not liable for debts contracted after 
his retirement. 

3. Nominal Partner, appearing to the world as partner with- 
out having any interest in the firm's business. He is liable to 
a third party to the same degree as the ostensible partner. 

4. Special Partner, one who supplies a certain amount of 
capital. If complying with the statutory requirements, he is 
liable only in proportion to his interest in the firm. 

Liabilities of the Firm. — A partnership has the privilege 
of doing business in the firm name and may sue or be sued 
like an individual. Debts contracted by any member of the 
firm for purchases made on the firm account shall be paid by 
the partnership. In case of the partnership being dissolved, 
the partners, in accordance with agreement, will divide the 



^ FORM OF ORGANIZATION I3 

property which remains after all firm indebtedness has been 
paid. 

Liabilities of Individual Partners. — The liabilities of part- 
ners to each other are regulated by written agreement; in its 
absence, the law assumes that partners share alike in profits 
and losses. If a partner withdraws before his partnership con- 
tract expires, he is liable to the remaining member or members 
of the firm for damages due to his withdrawal. 

The partners are individually responsible to a third party 
for indebtedness contracted by the copartnership. 

But creditors of each partner as an individual, if any, must 
first be satisfied before that partner's personal property can 
be attached for his partnership liabilities. 

A new partner is not responsible for debts contracted before 
he was a.imitted as a partner. 

Dissolution of Partnership. — A partnership is dissolved by 

1. Expiration of predetermined time, 

2. Mutual agreement. 

3. Death of a partner. 

4. Change of membership. 

5. Bankruptcy of a member or of the partnership itself. 

6. Court action, as in case of dishonesty, habitual drunken- 
ness, etc. 

No partner can sell out his interest in a copartnership and 
in that way avoid liability for debts contracted. 

When a copartnership is dissolved, a notice thereof should 
be sent in writing to all firms or individuals with whom the 
company is dealing or with whom it had former dealings. 
Such announcements should also be made through the news- 
papers. 

If a partnership is dissolved by the death of one member, 
the surviving members settle the partnership accounts, but they 
are not authorized to carry on the business for other pur- 
poses. When the affairs of the partnership have been settled 
and when the amount belonging to the deceased has been paid 
to his rightful heirs, the surviving partners may then resume 
business. 



14 MANAGEMENT OF DAIRY PLANTS 

CORPORATION 

A corporation has been defined as an association of individuals 
forming a body which the law regards as an individual. The 
members of such a body may change successively without affect- 
ing its status as a legal unit. 

We may distinguish between business corporations organized 
for pecuniary profits and corporations estabhshed for other than 
pecuniary purposes, such as churches, fraternal organizations, 
etc. The business corporation is gradually supplanting the 
more risky form of copartnership. This body organized for 
pecuniary profit is the one most commonly known by the name 
of "Corporation" or "Business Corporation," being an organ- 
ization of persons for the purpose of conducting some com- 
mercial enterprise. 

Advantages of the Corporation. — Parties investing money 
in business find that the corporation has several advantages 
over the older form of organization. Such advantages are: 
First, the permanency of the organization regardless of death, 
insolvency, or change of its members; second, the limited lia- 
bilities; third, the ease with which any person's interest in the 
corporation may be disposed of or transferred to other parties. 

Creation of a Corporation. — A copartnership is created by 
contract between two or more competent persons with the 
purpose of carrying on some legal business. A corporation is 
not created merely by agreement of the members, but must 
receive permission from certain government officials to act as 
a corporate being. Usually the secretary of state grants the 
applicant a charter permitting the members to do business 
under a corporate name and particularizing the rights and priv- 
ileges granted to such a body. The number of members re- 
quired for creating a corporation varies in the different states, 
the minimum number in most states being from three to five. 

Before commencing any business except their own organiza- 
tion, the members must adopt articles of incorporation which 
must be signed and acknowledged by the incorporators. For 
a corporation consisting of a number of members it is not neces- 



FORM OF ORGANIZATION 1 5 

sary that all act as incorporators, the number required being 
designated by law. The articles, when properly signed, are 
submitted to the secretary of state for his acceptance. 

It is advisable to consult an attorney when formulating the 
articles of incorporation, as the required form is controlled by 
statute. The following may serve as an illustration of points 
which are usually considered in such articles. 

1. The name of the corporation and its principal place of 
business. 

2. The general nature of the business to be transacted. 

3. The amount of capital stock authorized, the number of 
shares into which it is to be divided, and the time and condi- 
tions on which it is to be paid. 

4. The time of commencement and termination for the cor- 
poration. 

5. The names of the officers or persons by whom its affairs 
are to be conducted and the time and manner in which they 
will be elected. 

6. The highest amount of indebtedness to which it is at any 
time to subject itself. 

7. Whether private property is to be exempt from corporate 
debts. 

Powers of the Corporation. — A corporation is considered 
by law as being a legal or artificial person. It cannot carry 
on business except to the extent permitted by its articles of 
incorporation. If the organization decides to engage in busi- 
ness not permitted by its charter, an amendment to its articles 
of incorporation must first be made. The ordinary powers of 
a corporation are as follows: 

I. Perpetual Succession. — By this it is not understood that 
a corporation can continue forever, for in most states the dura- 
tion of the corporation is determined by the articles of incor- 
poration. But if the organization is operated in compHance 
with law, the corporation may be renewed successively and 
thus continue indefinitely. 

The change of membership in a corporation does not affect 
the life thereof. The holding of stock in a corporation is evi- 



l6 MANAGEMENT OF DAIRY PLANTS 

denced by a certificate of stock which is transferable. A cor- 
poration may, therefore, consist of members who were not its 
original stockholders, yet the corporation is the same and pos- 
sesses the same rights and privileges as under its original in- 
corporators. 

2. Electing Officers and Filling Vacancies. — The directors 
constitute the managing officers of the corporation. They are 
elected by the stockholders from their own membership. The 
directors again usually elect from the stockholders, or more 
often from their own members, a president, a vice president, 
treasurer, and a secretary. The president, vice president, and 
treasurer, if elected from stockholders not already directors, 
become members of the directing board upon their election to 
office. A majority of the directors usually constitutes a quorum 
for the transactions of business. The board is limited in power 
by the articles of incorporation and by the by-laws of the 
organization. The individual members of the board of directors 
cannot transact business for the corporation; they must act as 
a body. The board, however, has power to appoint some 
agent whom it can authorize to transact the business of the 
corporation. 

In case of vacancy in an office due to death, withdrawal, 
or any other cause, the board of directors is vested with power 
to elect a successor who will hold office until the first regular 
meeting for election of officers. 

3. Right to Sue and be Sued. — The corporation may sue and 
be sued as an individual, but its individual members cannot sue 
or be sued on the corporation's account. 

4. Right to Purchase and Hold Property and Real Estate. 

5. Right to Use a Common Seal. 

6. Right to Make By-Laws. — The by-laws are the rules and 
regulations by which a corporation governs itself. They should 
be passed by the stockholders of the corporation and must be 
consistent with the articles of incorporation and with the gen- 
eral law. 

The by-laws contain special provisions in reference to stock 
and stockholders. They define the duties of directors and offi- 



FORM or ORGANIZATION 1 7 

cers, contain the rules governing finances and dividends, and 
regulations as to meetings, amendments, and special p.- "ovisions. 

Rights and Liabilities of Individual Stockholders. — The 
'powers of individual stockholders are vested in the board of 
directors, but each individual has the right to attend stock- 
holders' meetings and to cast one vote for each share of stock 
he holds. He can participate in dividends in proportion to his 
holdings in the corporation. In case of dissolution of the cor- 
poration he has a right to share, proportionately to his holdings, 
in whatever amount is left after the liabilities of the company 
have been paid. 

The stockholder of a creamery corporation, in case of in- 
solvency, is liable to the full amount for which he has subscribed 
and in some states assessments may be made against the stock. 

Capital Stock. — The capital stock of a corporation is the 
aggregate amount of stock which the company is allowed by 
its charter to issue. This capital stock is divided into shares. 
The size of these shares is left to the discretion of stockholders, 
but is usually one hundred dollars each. The definition of kinds 
of stock is frequently controlled by statute but may usually 
be considered as follows: 

1. Common Stock. — This is the general stock of the corpora- 
tion — the stock which, without special provisions, shares in 
profits. If no special stock is issued by the company, all of its 
stock is common stock. The holder of common stock partici- 
pates in profits. He has the right to attend all meetings of 
the company, can vote on his stock, and shares in the assets 
of the company in proportion to the shares of stock he holds. 

2. Preferred Stock. — This is stock which has been sold under 
a guaranty that it will net a definite per cent dividend if the 
same is earned by the company. If less is earned, the entire 
earnings will then be divided among the holders of preferred 
stock. The dividend on the common stock is declared after the 
holders of preferred stock have all been satisfied. If the cor- 
poration becomes insolvent, the preferred stock is redeemed 
after the debts have been paid and before any of the common 
stock has been redeemed. 



l8 MANAGEMENT OF DAIRY PLANTS 

3. Treasury Stock. — Issued stock which has become the 
property of the corporation by purchase, gift, etc., is known 
as ''treasury stock." As such it is inactive, since it does not 
share in profits and has no pow^r to vote. It is considered as 
an asset of the company and may be sold or held by the com- 
pany at the discretion of the directors. 

4. Watered Stock. — This is stock that represents more than 
the full value of money which has been paid into the treasury 
of the company. Stock is watered by the unscrupulous cor- 
poration either for the purpose of making a big profit on the 
sale of stock or for the purpose of deceiving people as to the 
real earnings being made. Consider, for example, an electric- 
light company. It has invested $100,000 in the enterprise. 
The stockholders realize 25 per cent on their investment. In 
order to comply with certain state laws as well as to conceal 
from the public the enormous rate of dividend, the corporation 
issues stock up to $200,000 without correspondingly increasing 
any tangible values on which that additional stock rests. On 
such an inflated capital this annual dividend then becomes 123^ 
per cent instead of 25 per cent. 

Certificate of Stock. — A certificate of stock is evidence of 
ownership. It is transferable when properly indorsed by the 
owner and made payable to the purchaser. It is then to be 
transferred on the books of the company. 

Dissolution of a Corporation. — A corporation may be dis- 
solved (i) at the expiration of the predetermined time, (2) by 
the voluntary act of the stockholders, (3) by law — as in case 
of fraud or dishonesty in the conduct of business by the direct- 
ing board or the managing officers, (4) by insolvency. 

When a corporation is dissolved, the debts of the company 
are first to be paid. The balance of the assets will then be 
divided among the stockholders in proportion to their holdings 
in the company. 

MUTUAL COOPERATIVE CREAMERY ASSOCIATION 

This form of creamery organization was originated in Den- 
mark in 1882 by Stilling Anderson of Copenhagen, The asso- 



FORM OF ORGANISATION IQ 

elation was organized in the small country town of Hjedding 
not far from Esbjerg in Jutland. Cooperative associations along 
other lines were started in Denmark as early as 1866 by Mr. 
Sonne of Tisted, Jutland. Mr. Sonne's idea for such associa- 
tions was originally borrowed from Great Britain. 

A mutual cooperative creamery association is an organization 
of dairymen for the purpose of jointly converting the raw ma- 
terials, milk and cream, into finished products such as butter, 
cheese, ice cream, etc., the business being conducted on a purely 
mutual and cooperative plan. 

Such an organization may or may not be incorporated. If 
incorporated, its business, like that of any other corporation, 
is governed by articles of incorporation and by-laws. Its affairs 
are likewise conducted by a board of directors, and officers are 
elected either by vote of the members of the organization or 
by its directors. The directors usually select an agent who is 
responsible to the board of directors for his management of the 
business. 

Capital Stock and Dividends. — In some states the coop- 
erative association is organized with capital stock, but no divi- 
dends are declared on such stock. In other states the coopera- 
tive association is organized without capital stock, thereby 
indicating that dividends cannot be declared. 

The cooperative creamery, like the church, is of common 
benefit to a community and should be the common property of 
its people. The money required for establishing such a cream- 
ery should be subscribed by the producers in proportion to the 
amount of butter fat produced by each. In Denmark, a person 
joining a cooperative creamery association must guarantee to 
furnish the milk from all of his cows for a definite period ex- 
tending over several years. This system, however well adapted 
to Denmark, has not been incorporated in the by-laws of asso- 
ciations in the United States. It is more difficult in this coun- 
try to have the amount subscribed correspond to the amount 
of butter fat delivered to the creamery. 

One of the more satisfactory methods of securing money for 
the establishment of a cooperative creamery is through a loan 



20 MANAGEMENT OF DAIRY PLANTS 

secured by the association. This loan may be made by a bank 
or by individual members of the association. If the money is 
borrowed from a bank or a loan association, such an institution 
will naturally demand security. This is given by the members 
of the creamery association in the form of individual notes or 
joint notes which are held by the bank as collateral. The in- 
terest on this loan and part of its capital are paid annually from 
a sinking fund which is created by reserving one cent or a frac- 
tion of a cent per pound, from the price of the butter fat de- 
livered by each patron, or by assessing each patron a definite 
per cent on the money he receives for butter fat delivered. 
The amount or per cent to be paid varies in proportion to the 
amount of indebtedness, to the total amount of butter fat re- 
ceived by the association, and to the number of years required 
to pay the entire indebtedness. 

A sinking fund should always be created by the cooperative 
creamery association, whether the plant has been paid for or 
not. It is needed to keep the plant and equipment in repair 
and to buy new equipment. The amount accumulated for that 
purpose should measure up to 20 per cent of the cost of building 
and equipment and should be kept as a special account in the 
bank. 

All money received by the association from the sale of its 
goods belongs to the patrons of the creamery. After all oper- 
ating expenses have been paid and the necessary amount de- 
ducted for a sinking fund, the remaining sum should be divided 
among the patrons in proportion to the amount of butter fat 
delivered by each. 

Membership and Its Rights. — Only patrons of the cream- 
ery may become members of a mutual cooperative association. 
Each patron has one vote on all matters pertaining to the 
business. The fact that a person becomes a patron of the 
creamery should make him a member of the association as, 
in paying his share of the sinking fund, he is paying toward the 
maintenance of the plant. 

Dissolution. — In case of the dissolution of a cooperative 
creamery association, each patron or former patron has the right 



FORM OF ORGANIZATION 21 

to share in whatever amount is left after the liabilities of the 
association have been paid, such share being in proportion to the 
amount of business he has transacted through the association. 

Advantages. — The cooperative creamery is usually suc- 
cessful in communities where a sufficient amount of milk is pro- 
duced and where the people understand how to work together 
in harmony. In such communities the advantages of the 
mutual cooperative creamery association over one owned by 
an individual or a company are, primarily: 

1. Increased Value of Raw Product. — This is due to elimina- 
tion of dividends on capital stock and also to decreased expense 
in securing raw material through assurance of its more definite 
supply. Furthermore, this greater profit to members on their 
raw product stimulates them to secure increased production 
from their herds. 

2. Better Quality of Raw Product. — The patrons of a coopera- 
tive creamery realize more keenly the importance of better care 
for milk and cream on their own farms, knowing that neglect 
along such lines results in direct loss to them. In a cooperative 
organization the producers pay closer attention to the quality 
of goods delivered by their fellow^ members and the one who de- 
livers raw products of inferior quality is liable to severe criticism. 

JOINT-STOCK COMPANY 

The joint-stock company as a creamery company is an organ- 
ization of persons who join together for the purpose of convert- 
ing raw materials into finished products as well as for the pur- 
pose of marketing the same. This organization has a capital 
stock on Avhich dividends are declared. The joint-stock com- 
pany proves to be most successful in certain places, mainly 
those localities where the townpeople have come to a full realiza- 
tion of the advantages of home industry and organization, and 
where they exert some influence over the farming population. 
Many such creamery companies have been organized entirely 
by the efforts of the townspeople. They are commonly known 
as cooperative creameries but are not strictly cooperative in 
principle. Some of them approach cooperative methods closely 



22 MANAGEMENT OF DAIRY PLANTS 

while others are operated on much the same plan as a business 
corporation. 

Capital and Dividends. — The joint-stock company differs 
from the cooperative organization in that it declares dividends 
on capital stock and that stock is frequently held by people 
who are not producers. Some creameries operated under this 
form declare a large dividend on capital stock, but such divi- 
dend should not at any time exceed the current rate of interest 
on money loans. Some of these associations, when properly 
controlled by the producers, stipulate in their articles of incor- 
poration what per cent of dividend may be declared. Some do 
not designate such returns as dividends but as interest. They 
are thus making the cooperative feature more prominent and 
are also guarding against the possibility of any stockholder 
obtaining an unfair dividend, as the maximum rate of interest 
is defined by law. 

Price Paid for Raw Material. — Some creameries draw a 
distinct line between patrons who are stockholders and patrons 
owning no stock. They often pay a non-stockholder from one 
to two cents less per pound for butter fat delivered to the cream- 
ery; at the same time they deduct from his check a regular 
membership assessment for running expenses and for the sink- 
ing fund from which dividends and cost of repairs are paid. 

To illustrate, suppose a creamery thus organized and con- 
ducted received an average of 400 pounds of butter fat daily 
or 144,000 pounds annually. If its capital stock was $5,000 
and one cent per pound were deducted for fat received, the 
dividend declared in that way would amount to $1,440 an- 
nually, or 28.8 per cent of the capital stock. At the same time 
patrons might be recjuired to contribute to the sinking fund 
from which the regular dividend on capital stock is to be de- 
clared to stockholders. 

Obviously, the price paid for butter fat should be the same 
for all, whether stockholders or not. When non-stockholders 
assist in creating a sinking fund from which dividends and cost 
of repairs are paid, no more can rightfully be asked of them; 
nor is it fair to the patrons of such a creamery to create a sinking 



FORM OF ORGANIZATION 23 

fund much in excess of what is actually needed for declaring a 
fair dividend and for upkeep of the plant. 

Who May Become Stockholders. — Others than patrons of 
the creamery may own stock in the organization. But the 
patrons should at all times own its major portion. If the con- 
trolling interest is held by non-producers, the cooperative 
features of the organization are likely to be less marked, and 
the producers are more likely to lose enthusiasm. A creamery 
that has been organized as a joint-stock company may even- 
tually be changed into a cooperative creamery by gradually 
buying up the stock with the money in the sinking fund, if agree- 
able to the stockholders. It often appeals to a stockholder to 
know that he may subscribe to stock with the understanding 
that a definite dividend, say 8 per cent, will be paid annually 
together with a definite per cent of the capital. He feels more 
keenly that money thus subscribed is not lost. 

Rights of Stockholders. — Only stockholders of the organi- 
zation can vote on matters pertaining to the business. Some 
creameries are so organized that the stockholder has one vote 
for each share of stock, others come closer to the mutual co- 
operative association in allowing each member only one vote 
regardless of the amount of stock he holds. In most creameries 
of this kind the number of shares that can be held by one in- 
dividual is limited. 

This form of creamery organization, if conducted as near as 
possible on the cooperative plan, has the same advantages as 
the cooperative association; and in places where the townspeople 
are more aggressive than the farming population, this form is 
even preferred. This type of creamery association should not 
be confused with some of the big corporations that provide for 
a certain amount of stock to be sold to producers in different 
sections of the country. The latter form is not cooperative in 
any way except in name. The organization is under the absolute 
control of comparatively few individuals as, even if more than 
half of the stock were sold to producers, such stockholders are 
usually scattered so widely that no united action could be 
carried through by them. 



CHAPTER III 
CREAMERY CONSTRUCTION 

FLOOR PLAN 

Size of Floor. — The amount of floor space needed depends 
on the character and volume of business to be conducted and 
the methods of manufacture. The amount of room required 
in a plant handling whole milk is somewhat greater than that 
required for a plant manufacturing the same amount of butter 
from gathered cream. If cheese or ice cream is to be manufac- 
tured in connection with butter making, the problem becomes 
more complex. There is no definite rule by which to figure the 
amount of space required for manufacturing a definite amount 
of finished product, as it depends so largely on the method of 
manufacturing. As an illustration: In the manufacture of but- 
ter, one plant prefers to pasteurize the cream, another will churn 
the cream raw. The latter requires less space than the former 
for doing the same amount of work. Then, again, the kind of 
machinery installed often makes a noticeable difference, one 
pasteurizer occupying perhaps twice as much floor space as 
another of the same capacity. 

It is considered that a floor space 26 feet by 50 feet is 
sufficient for a gathered-cream factory manufacturing up to 
500 pounds of butter daily, and a floor space 30 feet by 60 feet 
for manufacturing from 500 pounds to 1,500 pounds daily. A 
floor space of 40 feet by 60 feet should be sufficient for manu- 
facturing from 1,000 pounds to 1,500 pounds of butter and from 
50 gallons to 100 gallons of ice cream daily. 

Arrangement. — The chief factors in determining a success- 
ful plan of arrangement are: 

I. Local Conditions. — Arrangement of floor space will be 
influenced by location with respect to street, alley, or railroad 

24 







o 



a 
^ 



26 MANAGEMENT OF DAIRY PLANTS 

track. Weather conditions might determine the place for cream 
intake. Retail business in connection with the factory might 
change the whole plan of arrangement. Advertising possibil- 
ities might well bring certain portions of the factory to the 
front so that some of its manufacturing operations are in plain 
sight of people passing by. This point is well illustrated by 
Fig. I, in which is shown a butter and ice cream factory located 
on the main street. Large windows in front expose the interior 
of the factory to the view of passers-by. The floor plan in 
Fig. 2 illustrates some influences a railroad track may have on 
the arrangement of a creamery. This building had to be so 
planned that coal, ice, and supplies could be unloaded from the 
cars on the creamery track and butter loaded into cars similarly 
placed. 

2. Convenience hi Operation — The greatest economy of. labor 
and power is obtained by having the product move through 
its successive factory operations on a straight line. At one end 
of that line the factory receives its raw material, as cream or 
milk; at the other end it puts out that raw material as finished 
product in the form of butter, cheese, ice cream, etc. It is ob- 
vious that those parts of a factory whose work is closely related 
should be near together. It would be very inconvenient, for 
example, to have the receiving room close to the churn and 
more distant from the cream ripeners. The natural and most 
logical arrangement is that with the cream-receiving room or 
platform first, the vat next, and then the churn. Testing is so 
closely connected with the receiving of cream and milk that it 
should be done close by or in the receiving room. Office work 
is also closely connected with the work in the receiving and 
testing rooms and should be near to both. 

Referring again to the floor plan in Fig. 2 : In order that ice, 
coal, and supplies might be most conveniently unloaded direct 
from the car, it was necessary to locate the boiler toward the 
center of the building. This made it very inconvenient in re- 
moving ashes, and the supply room was not conveniently lo- 
cated. Later, when it was decided to install a refrigerating 
plant, the former inconvenience was readily overcome by remov- 




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28 MANAGEMENT OF DAIRY PLANTS 

ing the coal room, boiler room, and receiving room to the other 
end of the building. The refrigerator could then be located 
against the supply storage room. 

Slope of Floor. — The floor in a creamery should have a 
slope of about one inch in four feet. In the churn room this 
slope should gradually increase toward the drain. 

Floor Materials. — Cement floors are perhaps the most 
serviceable as well as the most economical for creameries, but 
sawed stone and tile are also used to a limited extent. 

I. Cement. — The cement floor consists of a concrete base 
from four inches to six inches in thickness, with a surfacing one 
half inch in thickness. The base should be placed on a well 
settled and packed soil. 

The concrete base may be made of one part best Portland 
cement, two parts clean, coarse, sharp sand, and three parts 
mixed gravel or finely broken stone or tile, all thoroughly mixed 
and lightly tamped in place. Before the concrete has set, there 
should be applied to it a half-inch finish or surfacing consisting 
of equal parts of Portland cement and sharp sand, and this 
should then be troweled smooth. 

A cement floor may be laid in the second or third story of a 
creamery building; but unless the entire floor is constructed 
from reenforced concrete, such cement should be laid on top 
of a heavy plank floor properly supported to prevent jarring. 
Such an upper-story floor should be constructed practically the 
same as the main floor described above, except that between 
the concrete base and the plank floor there should be laid a 
covering of waterproof prepared material similar to prepared 
roofing. The sheets of this material should be properly ce- 
mented before the cement floor is laid. This waterproofing 
answers the double purpose of preventing the floor from leaking 
and of preserving it from cracks due to uneven contraction and 
expansion in the cement and wood. If the different parts of 
the floor are subjected to extreme differences in temperature, 
then the surfacing should be divided off into squares or rect- 
angles about thirty inches wide. The crevices may be filled 
with hot asphalt. 



CREAMERY CONSTRUCTION 



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30 MANAGEMENT OF DAIRY PLANTS 

2. Stone and Tile. — If sawed stone or tile is used for the 
floor, either one should be laid in cement on a concrete base 
similar to the base constructed for cement floors. 

3. Asphalt. — This has been used for creamery floors to some 
extent as a surface coating usually of about one and one half 
inches in thickness. It is laid on a concrete base as in the case 
of floors previously described. As asphalt floor has the advan- 
tage of being comparatively soft and hence less tiring to work- 
men than the harder floors. Furthermore, it is considered 
waterproof, and is comparatively easy to repair. However, as 
it gradually dissolves under hot water, it proves less desirable 
for floor covering in a creamery. 

4. Plank. — The plank floor was formerly used more exten- 
sively than any other kind. As it is unsanitary and lacking 
in durability, it cannot be considered very serviceable. 

FOUNDATIONS, WALLS, AND BRICKWORK 

Mortar. — Kidder ^ recommends for brickwork a mortar 
made from one part of Portland cement and three parts of 
sand. ''One barrel of Portland cement and three barrels of 
sand thoroughly and properly mixed will make 31/3 barrels, or 
12 cubic feet, of good strong mortar . . . sufficient to 
lay . . . 750 bricks, with 1/4 to 3/8-inch joints." 

Hoeppner maintains that a mortar made from cement and 
sand alone should not be used for hollow tile, as such mortar 
is too " short" and will roll off the tile and hence does not insure 
a full joint. 

Cement. — Cement used for building construction should 
meet the following requirements of the American Society for 
Testing Materials: 

The specific gravity of the cement, thoroughly dried at 100^ 
C, shall not be less than 3.10. 

It shall leave by weight a residue of not more than 8 per cent 
on a No. 100, and not more than 25 per cent on a No. 200 sieve. 

It shall develop initial set in not less than thirty minutes, 

^Architects' and Builders' Pocketbook, by Kidder, 1912, pp. 199-200. 



CREAMERY CONSTRUCTION 3 1 

but must develop hard set in not less than one hour, nor more 
than ten hours. ^ 

Cement mortar is injured to a great extent if frozen before 
it is set. Kidder ^ maintains that it is not safe to allow a slow- 
setting cement mortar to freeze in less than four days after it 
has been placed, while a very quick-setting cement mortar may 
freeze in twelve hours without injury provided the mortar is 
kept frozen until set. Portland cement mortar is injured more 
when it alternately freezes and thaws than when it remains 
frozen before it has set hard. 

Foundation. — This is most satisfactorily constructed from 
concrete. The thickness of the foundation at its top is equal to 
that of the wall, but gradually increases in thickness toward 
the bottom (Fig. 4). The depth of the foundation varies in 
accordance with the character of the ground and the size of the 
building. A foundation from 4 feet to 6 feet deep is usually 
sufficient for a building one story to two stories in height. 

The concrete for the foundation may be made of one part 
Portland cement, three parts clean, coarse, sharp sand, and five 
parts tile or stone broken in pieces of not more than 2 inches 
dimension. The cement and sand are first to be thoroughly 
mixed in the dry state, then mixed with water, and the broken 
tile or stone added, after which the concrete is turned over 
three times in the mixing box and immediately deposited in the 
trenches and tamped lightly until the water rises to the surface. 
The concrete walls above ground should be finished smooth 
aiid even. 

Walls. — The kind of material from which the walls of a 
creamery may be constructed depends largely on the cost and 
efiiciency of material available in the particular locality. The 
most common materials used in the construction of creamery 
walls are brick, hollow tile, brick and hollow tile, and cement 
blocks. A frame building is not to be recommended, as the 
fire risk is greater and the structure is lacking in sanitation, 
durability, and appearance. The walls of workrooms should 
be at least 16 feet from floor to ceihng. 

1 Kidder, 191 2, p. 853. ^ Kidder, p. 199. 



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MANAGEMENT OF DAIRY PLANTS 



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P"iG. 4. — Details of construction. 



CREAMERY CONSTRUCTION 33 

1. Brick. — Brick is perhaps the most satisfactory material 
from which to construct a creamery wall, but it is also the most 
expensive. The standard size of brick is 2 inches by 4 inches by 
8 inches. The brick should be uniform in composition and 
free from lime spots. A hard-burned brick is most durable; 
but for a building located in the city, pressed brick is more 
satisfactory for facing. A brick should be tested for its power 
to absorb moisture. This may readily be done by the following 
method: Place a brick in the furnace or in the oven of a kitchen 
range; leave it there for 24 hours or until the weight of the brick 
remains constant; then submerge in water for 24 hours; after- 
ward, wipe it dry with a cloth and weigh. A brick absorbing 
moisture to exceed 8 per cent of its own weight should be re- 
jected. Such a brick will disintegrate during the winter season 
when the moisture in it freezes. 

A one-story or two-story creamery building constructed from 
brick should have a wall not less than 10 inches thick, allowing 
2 inches for air space. The bricks should be laid with well- 
filled, full-bedded joints 2)1^ inches wide. The walls should be 
plumb and straight, using a line on both sides of the wall through- 
out its entire height. They should be securely bonded with 
headers, and should be reenforced above all openings. All ex- 
posed joints in walls should be neatly smoothed with the trowel. 

2. Hollow Tile. — Hollow tile has been used quite extensively 
during recent years in the construction of creameries. The 
standard sizes of hollow tile are 4 inches by 8 inches by 1 2 inches 
and 5 inches by 8 inches by 1 2 inches. The former is used more 
frequently. What has been stated concerning the quality of 
brick applies also to tile. It is tested in a similar manner, and 
any tile absorbing moisture to exceed 5 per cent of its own 
weight should be discarded. 

Hollow tile may be laid in two different ways — either on 
edge or down flat. If on edge and with a tile 4 inches thick, 
the wall should be constructed 10 inches thick with a 2-inch 
air space allowed. The principal objection to this wall, unless 
cemented on both sides, is its unattractive appearance. If the 
tiles are laid flat, a single layer will make a wall 8 inches thick. 



34 MANAGEMENT OE DAIRY PLANTS 

Such a wall is suitable for a one-story creamery, and is prac- 
tically as attractive as one made of brick. 

Particular care should be taken that joints are well filled 
with properly prepared mortar. If not, rain dashed by heavy 
wind will beat through the wall. Special attention should also 
be given to assure that ends of blocks are properly joined with 
mortar. Owing to their construction, this becomes the most 
difficult task in laying tile. 

The principal advantages of hollow tile are its comparative 
cheapness and low cost of laying. Air spaces in blocks serve 
as insulation if the walls are absolutely tight in construction. 
If any particular objection can be made, it is primarily that a 
hollow- tile wall may be more readily damaged, as by a wagon 
backing up against it. If a hole is made, the hollow tile affords 
an excellent hiding place for mice and rats. It is also more 
diflScult to make an air-tight wall from hollow tile. 

3. Combination of Brick and Hollow Tile. — This is becoming 
the more popular material for wall construction. It usually 
consists of a 4-inch brick for the outside wall, then a 2-inch air 
space, and finally a 4-inch hollow tile, making a lo-inch wall. 
The brick and hollow tile should be securely bonded with 
headers. This combined material has advantages over hollow 
tile in that it gives the building an outward appearance of solid 
brick, and the latter can be laid more easily to form a tight wall. 
It has the advantage of a solid brick wall in being less expensive 
and at the same time just as durable, since the inside wall is 
covered with cement plaster. Inside partitions are usually 
built from hollow tile exclusively. 

4. Cement Blocks. — The cement blocks used for creamery 
construction are either 8 inches by 8 inches by 24 inches or 
else 8 inches by 8 inches by 16 inches in size. These blocks 
should be double, with two or four wire headers between halves. 
Those used for outside walls are usually made rock-faced for 
the sake of appearance; those for inside partitions are smooth- 
faced. The blocks should show good workmanship in construc- 
tion, be made of good material, and show a sustaining strength, 
under test, of at least 1,000 pounds per square inch after they 



CREAMERY CONSTRUCTION 35 

have reached an age of 28 days. The blocks should be imbedded 
in cement mortar, with joints not exceeding J^ inch. The 
greatest objection to the cement-block wall is its tendency to 
absorb moisture. This, however, is largely overcome by using 
the particular blocks described above. 

5. Sills and Lintels. — These are made most satisfactorily 
from concrete. The exterior window sills, if thus made, should 
be reenforced and set in place. The lintels should be reenforced, 
and the concrete used should be of a strong mixture containing 
one or more parts of cement, two parts of clean sand, and four 
parts of coarse gravel or broken stone. 

6. Plastering. — The walls of all rooms except the coal room 
should be covered with two or three coats of a good, hard wall 
plaster. The last coat is to be composed of hard cement wall 
plaster, finished with a steel trowel, and brought to a true, 
even surface free from cracks. 

All plastering should be carried to the floor and connected 
with the surfacing from the floor. It is often advisable to carry 
the floor surfacing up on the wall for about one foot. Instead 
of the wall meeting the floor on a right angle, the juncture may 
be sHghtly rounded, thus making it easier to clean. A wall 
finished as above may be scrubbed and can, therefore, be kept 
in a sanitary condition. 

Chimney. — In planning the foundation for a chimney, it 
is advisable to consult an architect or at least some experienced 
person. If the soil is loose or wet, it may be necessary to drive 
piles on which to build the foundation. Fig. 4 illustrates a foun- 
dation and chimney built on firm soil for a 37-foot brick chimney. 

The chimney proper or stack should be built from shale brick. 
The core of the chimney upward from the bottom of the smoke- 
bridging opening should be built of fire brick laid in fire clay 
and securely bonded to the outer wall with galvanized iron 
bonds of such length and strength as to insure stability. Due 
provision should be made in the stack for attaching the smoke 
bridging or flue from the boiler, and for placing an iron clean- 
out door in the bottom of the stack. A door 18 inches by 18 
inches is most satisfactory for the ordinary sized stack. 



36 MANAGEMENT OF DAIRY PLANTS 

Engine and Boiler Foundations. — These should be built in 
accordance with details and specifications furnished by the man- 
ufacturer, and should be made from concrete composed of one 
part Portland cement, two and one-half parts clean sand, and 
five parts coarse gravel, broken stone, or tile. The foundation 
bolts should be placed in gas piping >^ inch greater in diameter, 
and should extend to within 3 inches of the bottom of the 
foundation. 

ROOFS 

The size and number of timbers required to support the roof 
should be carefully figured by an architect. It is considered 
that timbers should not span over more than 24 feet. If the 
building is of such construction that longer timbers are required, 
it may be advisable to use one or more steel beams, thereby 
shortening the timbers required as well as increasing the strength 
of the building. 

There are two general types of roofs — the flat and the 
pitched. 

Flat Roof. — The flat roof is constructed in much the same 
manner as a floor except that it has a slight pitch. The most 
common materials used on this type of roof are gravel, tin, and 
special prepared roofing such as asbestos, etc. 

1. Gravel Roof. — The gravel roof should have a pitch of from 
5/8 inch to I inch in the foot. It is supposed to protect a wooden 
roof better than tin, its life being from 10 to 15 years. Its cost 
will amount to about $7 per square,^ a square being 100 square 
feet. 

2. Tin Roof. — A tin roof, if properly laid and kept painted, 
will last from 20 to 30 years. Its cost will vary from $8 to $11 
per square.^ 

3. Prepared Roofing. — Such roofs are constructed in accord- 
ance with specifications furnished by the manufacturer. The 
cost of constructing a four-ply asbestos roof at Hartley, Iowa, 
was $7.29 per square. 2 

^ Figured at pre-war cost of material and labor. 
2 Bui. 139, la. Agr. Expt. Sta., 1913. 



CREAMERY CONSTRUCTION 37 

Pitched Roof. — Materials recommended as fireproof for a 
pitched roof are asbestos shingles, clay tiles, metal tiles, and 

slate. 

The pitch of the roof is obtained by dividing the height by 
the span; thus we speak of its being one-half, one-third, and 
one-fourth pitched. 

PAINTING 

Paint consists of a hquid carrier with which is mixed a soHd 
substance called pigment which gives the color desired. For 
ordinary painting, this liquid consists of linseed oil; but for 
enamel paints, varnish is used. White pigments consist of white 
lead, white zinc, or zinc lead.^ Yellow is commonly chromate 
of lead, or chrome yellow. Green is chrome green — a niixture 
of chrome yellow and Prussian blue. Blue is ultramarine, or 
sometimes Prussian blue. Brilliant red is usually a coal-tar 
color, while dull reds and browns are oxides of iron. Others 
are dull yellow. Black paints are made from carbons such as 
boneblack, lampblack, or graphite. 

Paints should never be applied to wet or damp surfaces. ^ A 
plastered wall should first be washed thoroughly with a solution 
of soap and next with a solution of alum. After it is entirely 
dry, a coat of oil should be applied, and then the paint. If ap- 
pHed directly, the paint will be attacked by the lime in the 
plaster. 

Knots, sap, and defects in the woodwork should be thoroughly 
covered with one coat of shellac reduced to the proper consist- 
ency in pure grain alcohol. All joints, nail holes, and similar 
defects should be filled level with white-lead putty after the 
priming coat has been applied. 

Priming Coat. — The priming coat is the first paint apphed, 
and usually consists of ordinary paint and raw Unseed oil mixed 
in equal proportions. A gallon of priming coat will cover about 
300 square feet. All exterior woodwork that is to be painted 
should be primed immediately upon its delivery to the premises. 

1 Kidder, Architects' and Builders' Pocketbook, 1Q12, p. 1403- 



38 MANAGEMENT OF DAIRY PLANTS 

Painting Proper. — After the priming coat is properly dried, 
two or more coats of ordinary paint should be applied. A gallon 
of paint will cover about 600 square feet. White paints are 
frequently used in our most modern creameries, often with a 
darker wainscoting. A very attractive effect is produced by 
applying two or three coats of common white paint followed 
with two coats of white enamel paint. If the proper enamel is 
secured, woodwork or cement walls thus painted may be washed 
with soap and water. 

Painting Steel and Iron. — In painting structural steel or 
galvanized iron, it should first be thoroughly scrubbed and 
dried, then painted. The first coat should consist of pure red 
lead and pure linseed oil mixed in the proportion of twenty-five 
pounds of lead to one gallon of oil. The next two coats should 
consist of white lead and linseed oil, mixed with coloring matter 
as desired. 

VENTILATION 

A creamery or dairy establishment should be well equipped 
with windows, and these should be kept open as much as pos- 
sible. But ventilation obtained in this way is far from sufficient. 
If the chimney is of good capacity, it can be made to serve as 
a most excellent means of ventilation. Mr. J. Sorenson * recom- 
mends the placing of two registers in the chimney, each to be 
from 6 to 10 inches square. One is to be located about 6 inches 
from the floor and the other near the ceiling, the lower being 
used during cold weather and the upper during summer months. 

One type of simple ventilator is in the form of a flue extending 
from the ceiling through the roof and properly protected with 
a hood. This type is fairly satisfactory during the summer 
season, but during the winter too much heat escapes through 
the flue. A type similar to the King system of ventilation will 
prove more satisfactory. This should consist of large openings 
near the floor from which flues extend through the roof of the 
building. The foul air is drawn up and discharged through 
these flues, and the fresh air is admitted through a series of 

^ Bui. 41, Minnesota Dairy and Food Dept., 1912. 



CREAMERY CONSTRUCTION 39 

small openings placed midway in the wall on the opposite side 
of the room. 

A hood connected with a flue extending through the roof 
should be installed over wash sinks and pasteurizers so that 
steam from such places may be conducted away from the 
room. 



CHAPTER IV 

SEWAGE DISPOSAL 

SEWER SYSTEM 

All rooms in the creamery, except the coal room and the re- 
frigerator, should be connected with the sewer. Water from 
wash sinks should be conducted through a pipe directly into 
the sewer, a trap being placed under the sink. Some creameries 
have an open drain or gutter in the workroom, with the floor 




Fig. s. — A sewer system that is readily cleaned. 

sloping gently toward a trap through which the water runs into 
a closed tile or sewer system. 

If tile is used in constructing the drainage system, it should 
be glazed. The tile should have a diameter of from 6 to 8 inches, 
and should be so laid that it may be cleaned with a wire or iron 
rod, if necessary. The sewer system in a large building should 
be constructed to clean readily by sections without requiring 

40 



SEWAGE DISPOSAL 



41 



pipes to be cut. This may be accomplished by using Ts or 
double Ts instead of Ls, closing them with plugs. 

Sewer Traps. -^ A sewer trap is a contrivance holding water, 
to be placed in local drainpipes wherever there is danger of air 
from a sewer getting into the interior of a building. The water 
acts as a seal against passage of gas in either direction, but 
permits free passage of liquid in the direction of the main sewer. 
The principal kinds of traps used in a creamery are the bell 
trap, the siphon trap, and the S trap. 

I. Bell Trap. — This is the one most commonly used in 
smaller creameries. In large creameries, the bell trap is often 




Fig. 6. — Bell trap. 



used as a floor trap, while one of the other forms may be added 
to the sewer system. The bell trap alone usually affords suffi- 
cient protection in small plants when a comparatively large 
amount of water is passing through at short intervals and where 
the creamery sewer is not connected with some larger sewer 
system as in cities. A bell trap cannot be ventilated; therefore, 
whenever that is found necessary, another style of trap should 
be installed. 

The principal reasons of insufficiency in a non- ventilated trap 



are; 



I. An increased pressure of gas within the sewer may displace 



42 



MANAGEMENT OF DAIRY PLANTS 



the water seal enough to permit passage of gas. When this does 
occur, the gas usually passes in the form of bubbles and can be 
detected in that way. 

2. Excessive suction may draw so much water out of the trap 
that the remainder fails to act as a seal. 

3. By evaporation, the water seal may be so lowered that 
gas is allowed to pass. 

4. By absorption, the water may take up gas on the sewer 
side and liberate it on the house side. 

2. Siphon Trap. — This is per- 
haps the most satisfactory of traps 
to be ventilated. The ventilator 
should be the same size as the pipe 
composing the drain. It is placed 
in the second curvature of the 
siphon. It is most satisfactory to 
place the ventilated trap in a local 
sewer before that enters the main 
sewer. Bell traps will then usually 
suffice for the floor traps. 

3. S -Shaped Trap. — This type, 
which can be ventilated, is used frequently under sinks and to 
some extent, also, in the main sewer system. 

Catch Basin. — It is well to have the large drain that leads 
out of a creamery connect with a catch basin a short distance 
from the building. This basin should be round, about 3 feet 
in diameter, and from 5 to 7 feet deep, depending on the slope 
of the ground. It may be built from either concrete or brick 
as happens to be most convenient. Its use is to catch all heavy 
materials, such as sand, nails, etc. ; for this purpose, the bottom 
of the basin should be from 2 to 4 feet lower than the tile that 
carries the drainage away from it. This catch basin may be 
covered with plank and about a foot of dirt, thus preventing 
any odors from escaping. It should be inspected once or twice 
a year to make sure that it is in good working order. If filled 
up to any extent, it should be cleaned — the work of only a few 
minutes. 




Fig. 7. — Siphon Trap. 



SEWAGE DISPOSAL 

CESSPOOL 



43 



In many places, the creamery will be required to purify its 
sewage before allowing it to enter the town sewer or before dis- 
charging it into public streams. For that purpose a cesspool 
or a septic tank is used. 

The cesspool may be utilized if the subsoil is of a loose, sandy, 
or gravelly nature. The cesspool consists of a hole dug in such 



Pfe/7/ Pipe 




Fig. 8, — Catch Basin.* 

soil of a size sufficient to hold several days' sewage. It should 
be walled up with stones not too closely fitted together and the 
top covered tight with planks and earth. The sewage water 
will seep away between the stones into the surrounding loose 
subsoil and thence gradually disappear. As this subsoil becomes 
clogged with suspended particles from the sewage, it gradually 
decreases in efficiency as a filter. Then a second cesspool is 
often dug, the sewage being conducted from one to the other 
through a tile placed some distance from the bottom of each pit. 
The cesspool is hardly to be recommended, as it has too many 
possibilities for danger through contamination of well water. 
But if used, it should be located at least 400 or 500 feet from 
the well. 

J Bulletin 46, Minn. Dairy and Food Dep. 



44 MANAGEMENT OF DAIRY PLANTS 

SEPTIC TANK 

In sewage purification, the septic tank proves of greater serv- 
ice and of less danger than the cesspool. In the latter, sewage 
is purified by filtration. In the former, it is cleansed mainly 
by a process of fermentation. This process involves the follow- 
ing principles which in turn influence the size and form of con- 
struction of the septic tank: 

1. Solid matter in the sewage which is subject to fermenta- 
tion must be given time to be decomposed by bacterial action. 
This calls for a tank large enough to hold several days' drainage. 

2. The bacteria are anaerobic and work best where sewage is 
quiet and covered with air-excluding scum. To accomplish this, 
the tank is divided into compartments which will automatically 
retard the flow of sewage between intake and outlet and keep 
fresh sewage separate from the older, thus hastening decom- 
position in the latter. 

It is maintained by some that the septic tank alone will be 
sufficient for the purification of sewage from the creamery. But 
it is safer to connect the septic tank with a filter bed over which 
the fermented sewage is discharged from the tank, either directly 
or through an intervening dosing chamber. By this method 
the purification of sewage is accomplished in two stages and 
with greater certainty of result. ^ 

1. The reduction process, which takes place in the tank and 
under conditions of air exclusion. Here the solid matter held 
in suspension in the sewage is decomposed by fermentation into 
an easily burned substance. 

2. The oxidation process, occurring in the filter bed and with 
greatest possible exposure to air. Here the products of reduc- 
tion are spread over the surfaces of numerous soil particles and 
thus purified through oxidation. 

Size of Tank. — The tank must be so large that it will hold 
sewage accumulations long enough for complete decomposition 
to take place. In creamery sewage, the solid matter is largely 
milk remnants in which decomposition is confined mainly to 

^ Wisconsin Exp. Sta. Bulletin 245, 1915, p. 54. 



SEWAGE DISPOSAL 45 

liquefaction of protein, breaking up of milk sugars, and emulsi- 
fication of fats. This generally necessitates a larger tank than 
for a like amount of ordinary sewage. 

The size necessary to take care of this daily flow can be es- 
timated in various ways, one being to assume that the amount 
of sewage will be from i to i^ gallons for every pound of butter 
manufactured. In general, a septic tank for creamery use 
should be large enough to hold the sewage which would accumu- 
late for about six days in the summer season. As fermentation 
will be slower during winter, the sewage must be left longer in 
the tank in order to decompose; but this is offset by the smaller 
quantity of water used during winter months. Hence, one size 
will usually prove satisfactory the year round. 

But before a septic tank is installed, the sewer from the build- 
ing should be so connected that water which does not need 
purification may be conducted away from the creamery without 
passing through the septic tank, and only such drainage as needs 
purification should be admitted to the tank; otherwise, the 
sewage in the tank becomes too dilute and a much larger tank 
will be required. Chemicals, such as strong acids or alkalies, 
should be eliminated from sewage for the tank. 

Construction of Tank. — The septic tank should be so located 
that its inlet is at least somewhat below the outlet from the 
factory. The most satisfactory material for construction is 
concrete. To facilitate decomposition, as explained above, the 
tank should be divided into three compartments of equal size. 
The outside walls and bottom should be about 12 inches thick; 
the partitions may be reduced to 6 or 8 inches in thickness. 

Siphons connect the first compartment with the second and 
the second with the third. They prevent the scum from being 
carried away and thus destroying the putrefactive bacteria. 
They also prevent the drainage from running across the surface 
of the tank without remaining to be decomposed. These two 
siphons, together with the inlet and outlet pipes, may be con- 
structed from 4-inch pipe. 

The inlet pipe discharging sewage from the factory into the 
tank and the outlet pipe at the opposite end should each have 



46 MANAGEMENT OF DAIRY PLANTS 

an elbow on the inside of the tank so that the drainage will be 
delivered and take its exit below the surface of sewage already 
in the tank, thus not disturbing the scum. 

The partitions, the elbows at the two ends, and the siphon 
connections all operate, to compel the liquid to run slowly 
through the tank as desired and to keep the scum undisturbed. 
As the drainage enters, the substances not in suspension — solid 
matter, sand, etc. — settle to th.^ bottom, and leave the liquid 
portion to be at once attacked 'le numerous decomposing 
ferments beneath the scum. 

The cover of the tank may be constructed from planks or 
from concrete, the latter bt^Ux^ the most satisfactory. It should 
be provided with manholes through which the sediment in the 
tank may be removed at least once a year. 

Dosing Chamber. — Farrington and Davis i recommend that 
a dosing chamber be provided between the septic tank and the 
filter bed, its purpose being to compel the liquid from the tank 
to discharge onto the filter bed intermittently instead of contin- 
uously and thus allow air to permeate the filter bed at intervals. 

The dosing chamber should be large enough to contain effluent 
from the tank sufficient to flood the filter bed from* one to three 
inches deep. The depth of the chamber should equal the dis- 
charging depth of some standard siphon. 

Filter Bed. — This is constructed from about a foot of gravel 

on top of which is added three or four feet of coarse sand, tile 

being laid at the bottom of the gravel for carrying the water 

away. Farringtor and Davis estimate that the area of the 

filter bed should be such that the rate of application of the settled 

wastes would not exceed 25,000 gallons per acre in 24 hours. 

^, gallons crP waste x 43^560 . ^,^ j j • 

Ihus, ^-^^ — = area of filter needed, m 

25,000 

square feet. 

If the effluent has too strong an odor, they recommend that 

chloride of lime be added to it in the dosing chamber about an 

hour before its discharge onto the filter bed. The proportion 

^ Wisconsin Exp. Sta. Bulletin 245, 1915, p. 13. 



SEWAGE DISPOSAL 



47 



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to 



48 MANAGEMENT OF DAIRY PLANTS 

of lime chloride thus added should be from i to 5 pounds to 
1,000 gallons of effluent. 

Sewage for Irrigation. — Experiments have been carried on 
to some extent in Denmark and Ireland, using creamery sewage 
for irrigating purposes and flooding several small fields alter- 
nately by intermittent discharge. In the United States, this 
would be of little interest to city manufacturers and, for the 
present, of but small value to country operators. 



CHAPTER V 

REFRIGERATION 

One of the chief requirements in any creamery is adequate 
means for keeping the products it handles properly cooled. Re- 
frigeration may be brought about either by a natural or by a 
mechanical system. In either case, however, it is essential that 
cooling rooms and cooling tanks are properly insulated. 

INSULATION 

A thermic insulator is anything which prevents or retards 
the transmission of heat. As applied to a creamery, insulation 
means the separation of its storage rooms from outside tempera- 
tures by non-heat-conducting walls, ceilings, floors, windows and 
doors. The insulator conserves refrigeration which has been 
created through natural or artificial means; hence, the slower 
its powers of heat transmission, the better the insulator will be. 
Any rules of guidance for effective insulation must, therefore, 
be based on the principles of heat transmission. 

Transmission of Heat. — Heat may be transmitted in three 
ways: 

1. By Radiation. — Heat is transferred from one body to an- 
other where the temperature of the intervening medium remains 
unaltered. This form of transmission is of less importance in 
considering the subject of insulation. 

2. By Convection. — Heat is transferred by convection when 
it is carried from one point or object to another by means of 
some outside agent as air, water, or any gas or fluid ; thus heat 
may be removed from a cold-storage room by the brine method 
of refrigeration. In the case of a refrigerator wall with large 
air space, the face next to the outer air is warmer than the face 
next to the cold room. In the air space, the air against the 

49 



50 MANAGEMENT OF DAIRY PLANTS 

outer wall becomes heated and rises, its place being taken by 
the cold air against the inside wall. As this in turn becomes 
warm, it forces its way upward; the other air, having gradually 
cooled, drops to the bottom; thus a continuous circulation is 
set up inside the air space itself and heat is constantly trans- 
ported by convection. 

3. By Conduction. — This mode of transmission is accom- 
plished by the transfer of heat from one molecule to another. 
It is the mode oftenest to be reckoned with in problems of in- 
sulation. The heat conductivity of dense substances, such as 
metals whose molecules are heavy and close together, is high; 
the conductivity of lighter material, such as wood, is less; while 
that of the gases is extremely low. An absolute vacuum would 
be an absolute insulator, but that is practically impossible on 
a large scale. Material containing the greatest amount of air 
divided in the smallest air spaces forms the best insulating 
material. 

Formula for Estimating Heat Conduction. — Of course, 
there is no building material or form of construction which gives 
perfect insulation. The total amount of heat which any given 
insulation will transmit in 24 hours is the measure of the re- 
frigeration lost through imperfect insulation in that time, and 
hence of the refrigeration that must be applied every 24 hours 
to offset that loss and keep the storage room at a given degree 
of temperature. For calculating this loss and consequently 
needed offset, the following formula may be used: 

R = fn {t — f) British thermal units 1 

In the foregoing formula, / represents the total square feet 
of insulating surface surrounding a given storage room — walls, 
floor, ceiling, windows, and doors; n is the number of B. T. U. 
of heat transmitted through such surface every 24 hours for 
each square foot, for each degree Fahrenheit of difference in 
temperature between inside and outside of wall; / is the average 
temperature outside the wall, and t' is the temperature to be 

^ A B. T. U. is the amount of heat required to raise the temperature of i pound 
of water i° F., at its greatest density. 



REFRIGERATION 5 1 

maintained inside. R represents the number of units of re- 
frigeration lost through these walls every 24 hours, and hence 
of refrigeration that must be supplied every 24 hours to offset 
that loss. 

In other words, R is the measure of ice meltage in 24 hours, 
expressed in British thermal units. This, translated into tons ^ 
of ice which can support that meltage, gives the following 
formula: 

R = - — ^ tons 

284,000 

Factors Governing Insulation of Storage Rooms. — The 

selection and use of insulating materials are to be guided by the 
following factors: 

I. Insulating Powers of Materials, Structures, and Walls. — 
The insulating power of any material, structure, or wall is really 
the same as its heat-conducting power applied inversely, and 
is measured by the value of n as given in the formulas above. 

A. Insulating Materials. — For different materials, Siebel 2 
gives the following values for n: 

For pine wood 2.0 B. T. U. 

" mineral wool 1.6 

" granulated cork 1.3 

" wood ashes i .0 

" sawdust I.I 

" charcoal, powdered i .3 

" cotton 0.7 

" soft paper felt 0.5 

B. Insulating Structures. — In the following table by Starr,^ 
the value of n for different structures is shown in column I. 
Column II shows the meltage of ice in pounds per 24 hours, 
where the difference in temperatures is 40° F. and the trans- 
mitting surface is 100 square feet. 

1 To convert i pound of ice at 32° F. into water at 32° F. requires an amount of 
heat equal to 142 B. T. U. — known as the "latent heat of fusion" for ice. 

2 Siebel's Compend. of Mechanical Refrigeration and Engineering, 1911, p. 117. 
^ Ibid, p. 381. J 



52 



MANAGEMENT OF DAIRY PLANTS 



TABLE I 
Transmission or Heat through Various Insulating "Structures 



Structures 



II 



5/8-in. oak — paper, i in. lampblack, 7/8-in. pine. (This is 

the ordinary small stock family refrigerator.) 

One 7/8-in. board, i-in. pitch, i 7/8-in. board 

Four 7/8-in. spruce boards, two papers, solid, no air space . 
Two double boarcis and paper (four 7/8-in. boards), and one 

air space 

One 7/8-in. board, 2-in. pitch, one 7/8-in. board 

One 7/8-in. board, 2>^-in. mineral wool, paper, one 7/8-in. 

board 

Two 7/8-in. double boards and two papers, i-in. hair felt. . 
Two 7/8-in. boards and paper, i-in. sheet cork, two 7/8-in. 

boards and paper 

One 7/8-in. board, paper, 2-in. calcined pumice, paper and 

7/8-in. board 

Four double 7/8-in. boards with paper between (eight 

boards) and three 8-in. air spaces 

Hair-quilt insulator, four boards, four quilts, hair 

One 7-in. board, 6-in. pat. silicated strawboard, air cell 

finished inside with thin layer pat. cement 

One 7/8-in. board, paper, 3-in. sheet cork, paper, one 7/8-in. 

board 

Two 7/8-in. boards and paper, 8-in. mill shavings and paper, 

two 7/8-in. boards and paper 

Same slightly moist 

Same damp 

Double boards and paper, i-in. air, 4-in. sheet cork, paper, 

one 7/8-in, board 

Same, with 5-in. sheet cork 

7/8-in. board, paper, i-in. mineral wool, paper, 7/8-in. board 
Double boards and papers, 4-in. granulated cork, double 

boards and paper 



S-1 

4.90 

4.28 

3-71 
4-25 

3.62 
3-30 

2.7 

2-51 

'2. 48 



1-35 
I .So 
2. 10 



1 . 20 
.90 
4.6 

1-7 



160.7 

138. 

120. 

105. 
119. 7 

loi .9 
93-4 

92.9 

95-2 

76. 
70.9 

69.8 

60. 

38.3 
50-7 
60. 

253 
130. 



C. Insulating Walls. — Pine wood is a good insulator. When 
used for walls, the value for n has been given as 2 B. T. U. 



REFRIGERATION 53 

Brick is a much better conductor of heat and therefore a poorer 
insulator. In accordance with results obtained in Germany, ^ 
the value of n for a brick wall lo inches thick is 8.5 B. T. U. 
If an air space is added to the wall, this figure is reduced to 
6.1 B. T. U. If the wall is absolutely air-tight, the thickness 
of the air space is immaterial. 

According to the same report, sandstone and limestone are 
still higher conductors of heat than brick. In a 12-inch wall 
built from sandstone, the value was found to be ii.o B. T. U.; 
and in a wall built from limestone of the same thickness, n 
proved to be equal to 13 B. T. U. 

For a single-sashed window, the factor n may be taken as 
12; for a double-sashed window, as 7 (Box). 

D. Thickness of Insulation. — The heat-conducting powers 
of any insulation are approximately inversely proportional to 
its thickness, other conditions being equal. A lo-inch brick 
wall will transmit 8.50 B. T. U., whereas a 40-inch wall under 
the same conditions will transmit only 3.85 B. T. U. 

2. Temperature to he Maintained. — A decrease in the tem- 
perature to be maintained requires a corresponding increase in 
insulating power. This is illustrated in the following table: 

Temperature from — 10 to 5° F., use 6 in. cork 
5 to 20° " '' 5 " " 
20 to 32° " " 4 " " 

32 to 45° " " 3 " " 
" " 45 and above " 2 " " 

3. Climatic Conditions, — These will naturally affect the dif- 
ference in temperature on the two sides of a wall and will con- 
sequently affect the transmission of heat. They should be 
given due attention when constructing a cold-storage room 
close to an engine room or a boiler room, or when constructing 
it with an outside wall face, or when locating it on a south 
rather than a north exposure. 

4. Other Factors. — The materials used for insulation should 
be free from rot, mold, and offensive odors. In both nature of 

1 Siebel's Compend. of Mechanical Refrigeration and Engineering, igii, p. 382. 



54 MANAGEMENT OF DAIRY PLANTS 

materials and form of construction, the walls should be vermin- 
and germ-proof and should give no inducement for mice and 
rats to nest within them. Insulation should be not only moisture- 
proof, but also elastic and of light weight to prevent settling. 
Other qualities to be regarded are the degree of fireproofness, 
durability, strength, appearance, cost, etc. 

Construction for Insulation. — All refrigerators should be 
constructed with a vestibule. When the door of the vestibule 
is open, the door of the refrigerator should be kept closed, and 
vice versa. 

1. Dead Air Space. — This is the oldest form of insulation. 
Although the air itself is a good insulator, it should be divided 
into small air cells to be most efficient. In a large space, heat 
is carried readily from one side of the wall to the other by convec- 
tion, and the slightest crack or even nail hole will tend greatly 
to reduce insulating power. 

The inefficiency of this form of construction is demonstrated 
by Ruddick.i A refrigerator thus constructed with a 6-inch 
dead air space melted 1,879 pounds of ice. During the same 
time and under the same conditions, a refrigerator of the same 
size and of same construction, except that the 6-inch hollow 
space was filled with sawdust, melted 1,328 pounds of ice. The 
third tj'pe of refrigerator, similarly constructed with 6 inches 
of shavings, melted 1,055 pounds of ice during the same time 
and under the same conditions. The average temperature held 
in the refrigerators was 42° F. for the one built with air spaces, 
41° F. for the one insulated with sawdust, while the temperature 
was reduced to 37.6° F. in the one insulated with shavings. 

2. Sawdust and Shavings. — As already stated, both are effi- 
cient insulators; but they must be kept dry. Sawdust absorbs 
moisture more readily than shavings. When damp, both lose 
greatly in efficiency; and sawdust will then not merely become 
a most excellent conductor of heat, but will also settle and leave 
an empty space on top. Shavings, if properly packed, will not 
settle. They are, as a whole, the most satisfactory of the two 
materials. 

1 Canada Dairy Commr. Rept. for 1906, pp. 52-55. 



REFRIGERATION 



55 




^*S 6iJima 
TA O 



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Fig. io. — Sections of insulated walls by Ruddick. 



56 MANAGEMENT OF DAIRY PLANTS 

3. Cork. — Cork is perhaps one of the most satisfactory ma- 
terials for both efficiency and durabihty. It is used in the form 
of granulated cork and also as cork slabs. Slabs are put on in 
one or more courses, in the latter case all joints being broken. 

In accordance with instructions given by a constructing firm 
the cork board should be erected in a half-inch Portland cement 
mortar mixed in the proportion of one part Portland cement 
to two parts clean, sharp sand. Against the exposed surface of 
this cork board, a Portland cement plaster finish, about ^ inch 
in thickness, is applied in two coats. The first coat is approxi- 
mately ^ inch in thickness, mixed in the proportion stated 
above, and rough scratched; the second coat is approximately 
y^ inch in thickness, mixed in the proportion of one part Port- 
land cement to one and one-half parts of clean, sharp sand, 
and brought to a finish with a steel trowel. The plaster should 
be kept wet by daily sprinkling for at least a week after the 
second coat is applied, in order to reduce cracking to a 
minimum. 

The ceiling and floor are insulated in a manner similar to 
the wall. The cork boards should fit closely together at the 
corners (see Fig. 11). The floor, if a ground floor, should be 
dug down to such depth that, after the insulating material has 
been applied, it will be level with other floors in the building. 
Such a floor may be constructed as follows: After the ground 
has been properly graded, cinders to the depth of about 4 inches 
or more may be added. These are thoroughly packed and on 
them is placed about 4 inches of concrete. On top of this the 
cork boards are laid so as to join with the cork boards of the 
walls. The floor is finished by adding about 4 inches of con- 
crete on top of the cork and then about }4 inch of finishing 
cement, as in laying any other cement floor. 

4. Mineral Wool. — Mineral wool is made from the slag of 
blast furnaces. It will absorb moisture; but aside from that, 
it meets the requirements of an efficient insulating material. 
It is now furnished in slabs as the most convenient form for 
use. In this form it may be put on walls in the same manner 
as cork slabs; but, not being waterproof, it is usually put on 



REFRIGERATION 



57 



\ H "^ "^ 



■ I ■ I I — — ^— , ■ I — ■ ■ I ■ ■ ■-— 1.._ — ■■ , — — I ■ ■■ I— i ;,, ja 'f j^ 




58 MANAGEMENT OF DAIRY PLANTS 

with a waterproof hot cement made from a mixture of pitch 
and asphaltum. As in the case of cork, it is finished in a smooth 
cement plaster. 

5. Lith. — Lith is considered to be as satisfactory an insulat- 
ing material as cork, except that it takes up moisture more 
readily. It is cheaper than cork. The construction with lith 
is the same as with cork.^ 

6. Other Materials. — Other insulators, such as hair felt, 
might be mentioned; but this has not become of much impor- 
tance for creamery-storage insulation. 

SYSTEMS OF REFRIGERATION 

Two systems of refrigeration exist — the ''Natural" and the 
''Mechanical." The natural system uses ice as its source of 
refrigeration; while the mechanical system removes the heat by 
merchanical methods. 

NATURAL REFRIGERATION 

Methods. — In natural refrigeration, the ice used for cooling 
purposes must be stored, requiring an ice house more or less 
insulated. In using that ice for chilling stored products, the 
refrigerator may be cooled by any one of three different methods. 
The temperature may be lowered by the use of ice placed in 
an ice bunker located in the refrigerator, or by connecting the 
refrigerator with a contiguous insulated ice house, or by in- 
stalling a tank above the refrigerator from which ice-cooled 
brine is circulated through the refrigerator in a system of pipes. 

I. Ice Bunker Method. — This is the oldest form of refrigera- 
tion and is yet in most common use in the smaller creameries. 
The ice is placed in a bunker overhead and usually at one end 
of the refrigerator. The refrigerator is frequently built against 
an outside wall through which a small refrigerator door admits 
ice from outside to the ice bunker. By leaving this door open 
during cool nights, the refrigerator may be kept in good condi- 
tion without ice during a good portion of the year. 

' For mineral wool slabs and Lith metal lath should be used for holding the 
plaster. 



REFRIGERATION 



59 



The ice bunker should be so placed and constructed that it 
will cause circulation of the air in the refrigerator. This is done 
by placing a tight board screen on one side of the bunker and 
slats or cleats on the opposite side (Fig. 12). The air will then 
enter the ice bunker from above the board screen and come in 
contact with the ice. The moisture from the air unites with 
the water melting away from the ice and is carried away with 
it; the air, which thus becomes dryer and chilled by the ice, 
descends through the open side of the bunker. If both sides 




Fig. 12. — Section showing perfect air circulation in an 
ice bunker refrigerator. 



were open, the air would descend from both sides and thus 
result in conflicting currents which would check the circulation. 
The bottom of the ice box on the inside is covered with gal- 
vanized iron sheeting turned up on the walls of the box from 
4 to 6 inches. From this galvanized pan a galvanized iron pipe 
carries the water away. This water may be collected outside 
of the refrigerator and, if the ice is clear, may be used for testing 
and other laboratory purposes. The pipe carrying water from 
the ice pan should be equipped with a trap to prevent com- 
munication of air between the refrigerator and the outside. 
The bottom of the ice box should be insulated on the outside 
and the ends of the box tightly boarded up. 



6o MANAGEMENT OF DAIRY PLANTS 

2. Insulated Ice House Method. — By this method, the refrig- 
erator is connected directly with the ice house. This plan, as 
far as known, originated in Minnesota ^ and in Canada. ^ 

A. Advantages. — The principal claim made for this ice 
house is its saving of labor, as the ice need not be handled after 
once placed in the ice house. It is also more sanitary than the 
old-style ice bunker, and the refrigerator connected with the 
insulated ice house is always dry and well cooled. Further- 
more, as the ice taken from it is always clean, none is lost through 
having to cleanse it before using. The only disadvantage that 
might be mentioned here is the original cost of construction. 

B. Construction. 3 — For the construction of this system, it is 
recommended that the ceiling in the ice-storage part should be 
as high as possible — from i6 to 22 feet, while the refrigerator 
room should be from 6>^ to 7^^ feet high. The walls between 
the ice house and refrigerator need not be as heavily insulated 
as the outside walls; but they should be as nearly air-tight as 
possible, except near the floor and ceiling where openings should 
be provided for circulation of air. The cold air will pass from 
the ice-storage room into the refrigerator through the floor 
vents, will gradually warm up and rise to the ceiling, and will 
thence pass back into the ice-storage room again through air 
flues, coming there in contact with the ice and depositing its 
absorbed moisture. The air flues from the upper vents are 
necessary in order to make the air pass over to the farther wall 
and thus effect a complete circulation throughout the ice house. 
To allow free circulation, the total area of all openings at the 
floor should equal about 600 square inches, with the same total 
for ceiling vents. These vents should be closed during winter 
weather to keep the refrigerator from getting too cold. 

The walls, ceiling, and floor of this ice house should be insu- 
lated in the same manner as regular cold-storage rooms, not 
less than 4 inches of cork or lith being used. It is recommended 
that the floor of the ice room have a slope of T)!^ inches to the 

^ Bulletin 41, Minnesota Dairy and Food Department, 1912. 

^ Report of Dairy Commissioner for the Dominion of Canada, 1906. 

^ Bulletin No. 41 of Minnesota Dairy and Food Department, 1Q12. 



REFRIGERATION 



6i 




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62 MANAGEMENT OF DAIRY PLANTS 

foot, leading to a cement tank set in the corner of the ice-storage 
room to catch ice meltage. This meltage can be pumped thence 
to the cream vats for cooUng purposes. The tank should be 
3 feet by 4 feet by 8 feet deep, or larger, and set flush with the 
floor. It should have an overflow connected with the sewer 
through a trap. Two i^-inch galvanized iron pipes should be 
laid in asphalt and granulated cork 4 feet below the floor, con- 
necting the tank with the cream vats through a pump. By one 
pipe the cold water will be carried from the bottom of the ice- 
meltage tank to the bottom of the cream vats, and by the other 
pipe that water will be returned to the same tank from the 
surface of the cream vats. If the water in the tank is not suffi- 
cient to cool a large amount of cream, ice may be placed in this 
tank instead of bringing it into the creamery. 

A small window with six or seven layers of sash, giving five or 
six intervening air spaces, should be placed next the ceiling of 
the ice room to give light. Another similar window should be 
placed in the refrigerator, about 5 or 6 feet above the floor. 

The outside door to the ice house should be 3 by 7 feet. 

C. Filling the Ice House. — While packing the ice, a working 
space about the size of four cakes of ice should be left inside the 
doorway. It is recommended that the ice be cut into oblong 
cakes and be piled lengthwise and crosswise in alternate layers, 
thereby binding together and preventing the ice from leaning 
against the wall. When the ice room has been filled, the out- 
side door should be closed and sealed with suitable insulation. 

3. Gravity-Brine Method. — This method of refrigeration con- 
sists of a system of continuous coils of pipe containing brine of 
such strength that it will not freeze. Part of this system of 
coils extends through a salt-and-ice tank above the refrigerator. 
Here ice and salt are mixed in proper proportions to insure the 
desired temperature for the brine passing through it. The 
brine thus cooled descends by force of gravity through the 
lower portion of the coil extending through the storage room. 
There it takes up the excess heat from the room and is again 
forced up through the cooling tank by the cooler and heavier 
brine, thus establishing a complete circulation. The greater 



REFRIGERATION 



63 



the difference between the temperature in the cooling tank and 
the temperature of the refrigerator, the greater is the velocity 
of circulation. 

4. Common Ice House. — This is the kind of ice house used 
with the ice bunker and with the gravity-brine methods of re- 



M>/////////a 




Fig. 14. — The Cooper gravity brine system and chloride of calcium process. 

frigeration. It is not connected with the refrigerator and is 
seldom insulated to the extent of the one used in the insulated 
ice-house method. It is often constructed from one thickness 
of boards; and when packing the ice, space is allowed for one 
foot of sawdust to be packed between the ice and the wall. 
Some ice houses are built with a double wall insulated with from 
8 to 12 inches of shavings. If the walls are thus insulated, it 
is advisable to have the floor also insulated; and for this pur- 
pose no insulation is more satisfactory than cinders and cork. 



64 MANAGEMENT OF DAIRY PLANTS 

The ice should be packed as already described, and may be 
covered with prairie hay. 

Estimating Ice Storage. — In building for ice storage, it 
is necessary to determine the space required which, in turn, is 
dependent on the amount of ice likely to be needed during the 
year. For these estimates there are more or less definite methods 
of calculation. 

I. Amount of Ice Required. — In determining the amount of 
ice to store, we should consider the loss of ice due to melting in 
the ice house, the loss of ice in the refrigerator due to conduction 
of heat through walls, floor, ceiling, etc., the amount of ice 
required for chilling the particular products kept in the refriger- 
ator, and the amount of ice used in the factory for various 
purposes. In the problems that follow, it is supposed that ice 
will need to be used for refrigeration only about 6 months in the 
year, on the average. 

A. Loss from Shrinkage in Stored Ice. — In an ice-storage 
house without artificial refrigeration, Siebel ^ estimated the 
shrinkage from January to July to be i/io pound of ice every 
24 hours for every square foot of wall surface; or, in round num- 
bers, from 6 to 10 per cent of the ice stored during the 6 months 
mentioned. In the average creamery ice-storage house, the 
shrinking is usually estimated to be nearer 20 per cent; and this 
latter rate is the factor used in the following calculations. 

B. Loss from Imperfect Insulation of Refrigerator. — (See 
also the general formula, p. 62.) In refrigerators constructed 
in accor ance with Table I (p. 63), the average loss in refrigera- 
tion per day is 3 B. T. U. for each square foot, for each degree 
of difference in temperature between the outside of the refriger- 
ator an its inside. This average of 3 B. T. U. may reasonably 
be considered as the unit of loss in 24 hours from the average 
creamery refrigerator. Consider that, in a refrigerator 10 feet 
square by 8 feet high, the temperature within the refrigerator 
is 40° F. and that outside of the refrigerator is 70° F. — a fair 
average for the 6 months. Then area of walls, floor, and ceiling 
is equal to 520 square feet. 

^ Siebel's Compend. of Mechanical Refrigeration and Engineering, igii, p. 207. 



REFRIGERATION Qe 

The amount of ice melted due to heat that is being conducted 
through walls, floor, and ceiling during a period of 6 months or 
1 80 days is equal to 

520 X 3(70-40) .. Q 

X 180 = 29.66 tons. 

284,000 ^ 

C. Ice Required for Chilling Products Stored. — Different 
products take up a different amount of refrigeration for each de- 
gree that temperature is reduced. This depends on the specific 
heat 1 of the product. The specific heat of butter at 60° F. is 
.53 B. T. U.; 2 that of cream at the same temperature is .84. 
Suppose the refrigerator is used for butter only, and that 600 
pounds daily has to be reduced in temperature from 60° to 40° F. 
Then 

Daily heat removed from 600 pounds of butter = 

600 X .53 X (60 - 40) = 6,360 B. T. U. 

If the butter is packed in tubs or boxes, it will furthermore be 
necessary to reduce the temperature of these containers to the 
same extent. Suppose ash tubs of 60 pounds capacity are used, 
that each tub weighs 10 pounds, and that the specific heat of 
wet ash wood be .4.'^ Then 

Daily heat removed from 10 tubs = 100 X 4 B T U X 20 
= 800 B. T. U. 

Daily ice required for cooling butter and tubs = ^>36o + 800 

142 
= 50.42 pounds. 

Total ice required for 6 months = 50.42 X 180 = 9,075.6 

, 9,o7cr.6 

pounds; or, ^ = 4.54 tons. 



2.000 



The specific heat of any substance is the amount of heat, expressed in B T U 
wh^h will be absorbed by r pound of that substance in raising its temperature 
I F.; conversely, it is the amount of heat, in B. T. U., which will be given off by 
I pound of that substance in lowering its temperature i° F. 

- Research Bui. 14, Iowa Agr. Expt. Sta., 1913 

3 Bulletin no, U. S. Forestry Bureau, gives the specific heat of dry white ash as 
.327. 



66 MANAGEMENT OF DAIRY PLANTS 

D. Ice Used in the Factory. — In a creamery where only 
butter is manufactured, ice is used in the factory only for cooling 
the cream to churning temperature — in this instance, supposed 
to be 50° F. Cream is usually cooled first with water to about 
65° F. If the water is quite cool, it may be used to reduce 
cream temperature to 60° F. or even lower. 

In manufacturing 600 pounds of butter daily, we can estimate 
the amount of cream handled daily to be about 1,800 pounds. 
Then 

Daily ice required to cool cream from 65° F. to 50° F. = 

1,800 X. 84X15 , 

= 159.71 pounds. 

142 

Total ice required for 6 months = 159.71 X 180 = 28,747.8 

, 28,747.8 

pounds; or, — - — - — = 14.37 tons. 
2,000 

In addition to this, a further loss — probably 10 per cent — 
is to be reckoned in for ice lost in handling, in cooling water 
used for circulation, and in absorption of heat from the atmos- 
phere. Losses in refrigeration due to opening of doors and to 
heat given off by persons, lights, etc., do undoubtedly occur; 
but there seems no way of reducing them to definite calculation. 
It should furthermore be borne in mind that ice is used for 
cooling purposes during the entire year and that the creamery 
during the winter months is handling about 50 per cent as much 
product as during the summer season. Therefore 

Total ice used for cooling cream for i year 

^ 10 , 14.37 X V- 4. 

= 14.37 X — + -^ = 23.95 tons. 

9 2 

Total amount of ice used for the creamery during the year: 

Loss due to conduction from refrigerator 29.66 tons 

Ice required for chilling the product 4.54 " 

Ice required for cooling cream, etc 23.95 " 

Total 58.15 tons 



REFRIGERATION 6^ 

Adding to this the 20 per cent loss of ice in the ice house, we 
arrive at the total amount of ice that should be stored for a 
plant of such size and operated under such conditions as speci- 
fied. 

58.15 X y = 72.69 tons. 

2. Space Required for Ice Storage. — The weight of i cubic 
foot of water at 60° F; equals 62.355 pounds; the specific gravity 
of ice is considered to be from .917 to .922, the average being 
.92. Therefore 

Weight of I cubic foot of ice = 62.355 X .92 = 57.37 pounds. 

Space in cubic foot required to store 72.7 tons of ice 

72.7 X 2,000 u- f ^- 

= - — = 2,534 cubic feet. 

57-37 

In addition to this, from 10 to 20 per cent should be allowed 
for spaces between ice-blocks and for sawdust insulation in the 
ice house. 

An ice house built in the form of a cube is most satisfactory. 
Each dimension of this cube of ice, with insulation, is, with 

20 per cent allowance, equal to \/2,534 X tH — i4-5 f^^t- 

To this figure should be added the amount of overhead space 
required for working purposes. 



CHAPTER VI 
MECHANICAL REFRIGERATION 

GENERAL DISCUSSION 

History of Mechanical Refrigeration. — The mechanical 
system of refrigeration is of rather recent origin. In 1834, 
Jacob Perkins of London invented an ice machine using volatile 
liquid. In this machine ether was vaporized and expanded 
under reduced pressure maintained by the suction of a pump, 
the heat required for such vaporization being abstracted from 
the substance to be cooled. The resulting vapor was com- 
pressed by the same pump into a vessel cooled by water, where 
it was liquified. 

This machine contained all four of the essential features 
present in all modern compression systems; namely, the evapo- 
rator or expansion coil, the compressor, the condenser, and the 
regulating valve between the condenser and the evaporator. 
Yet his system was not generally adopted, and it was not until 
1 86 1 that an ice machine was successfully used for commercial 
enterprises. 

Principles Involved. — Mechanical refrigeration is based 
upon the fact that a liquid, when converted into vapor, ab- 
sorbs heat from surrounding bodies. Chemicals which at 
boiling point are considerably below the temperature of the 
surrounding air, which are reasonably cheap, and which can be 
handled with the least danger to life and property, are therefore 
used in the refrigeration process. The chemical complying most 
fully with such requirements is ammonia, and it is the liquid 
most frequently used for mechanical refrigeration. Other chem- 
icals, such as carbonic acid and sulphuric dioxide, are used to a 
limited extent. 

Ammonia. — Ammonia is used in one of two forms, either as 

68 



MECHANICAL REFRIGERATION 69 

"Anhydrous ammonia" or as "Aqua ammonia." The former 
is free from water and exists in both gaseous and liquid form; 
the latter is in the form of a solution of which about 29 1/2 per 
cent is anhydrous ammonia. The anhydrous ammonia is used 
in refrigerating machines of the compression type; aqua am- 
monia is used in refrigerating machines of the absorption type. 

Pure anhydrous ammonia, under ordinary temperature and 
atmospheric pressure, exists in the form of gas or vapor; but 
under atmospheric pressure at a temperature of —30° F., it be- 
comes liquid. It will also liquefy at higher temperatures if the 
pressure is sufficiently increased. In its liquid form it is color- 
less, has a strong alkaline reaction, boils at — 29° F. under 
atmospheric pressure, and its latent heat of vaporization is 
555 B. T. U.i Its specific gravity at 32° F. is o. 6364. One 
pound of this liquid, after being vaporized and the vapor raised 
to 32° F., will occupy a space of 21.017 cubic feet under atmos- 
pheric pressure. 

Ammonia attacks copper and brass but not iron or steel, and 
this fact determines the metal from which compression ma- 
chinery must be made. Ammonia decomposes at 900° F. if in 
pure condition; but if it contains impurities, it may decompose 
at comparatively low temperatures. Ammonia may contain 
impurities which will not influence its stability; but if mixed 
with another brand of ammonia containing a different kind of 
impurities which alone would not have any influence on its 
stability, such ammonia may deteriorate much more readily 
owing to the fact that the impurities of one supplement the 
impurities of the other and cause decomposition. This explains 
the advisability of not mixing different brands of ammonia. 

COMPRESSION SYSTEM 

In this type of refrigeration, the ammonia operates in a 
cycle: First, the liquid or inactive stage; second, the vaporizing 
or actively refrigerating stage, taking place in the expansion 

* The latent heat of vaporization for any liquid is the total amount of heat, ex- 
pressed in B. T. U., which is required to change i pound of that liquid at the boiling 
point into vapor. 



70 MANAGEMENT OF DAIRY PLANTS 

coils; third, the Hquefying stage, during which the vapor or gas 
is again reduced to its Hquid form in two successive steps — 
compression and heat extraction or condensation. Being thus 
returned to its original liquid form, the ammonia may be used 
over and over again in successive cycles of refrigerating activity. 

The machinery through which this cycle operates is com- 
posed of four principal parts: First, the expansion coil; second, 
the ammonia compressor; third, the condenser, and fourth, the 
expansion or regulating valve. 

Expansion Coil. — This is that part of the system where 
refrigeration takes place. Through reduction in pressure, the 
liquid ammonia is there changed into a gas, thus absorbing heat 
from its surroundings and thereby effecting refrigeration. 

This expansion coil may be located directly in the refriger- 
ator and serve as the refrigerating coil, in which case it is called 
the "Direct Expansion" method of cooling. On the other 
hand, the expansion coils may be placed in a tank of brine 
from which the brine in turn is circulated through refrigerating 
coils located in the refrigerating room. This indirect method of 
cooling is known as the ''Brine Method." 

1. Direct Expansion. — The system of direct expansion is 
adapted especially for rooms that are to be cooled to an ex- 
tremely low degree of heat and in places where the machine is 
operated constantly. It cannot, therefore, be considered the 
most ideal method for the smaller creamery or dairy. 

2. Brine Method. — This is the system which is most suitable 
for the average creamery. The brine tank should be located 
in the refrigerator in a position and with insulation similar to 
that of the ice bunker described under the natural system of 
refrigeration (Chapter V). The larger body of brine retains a 
more constant temperature, and in a smaller dairy the com- 
pressor may be operated only for a short time daily in order to 
reduce the temperature of the brine and so maintain the neces- 
sary refrigeration. 

The brine, when thus cooled, may be circulated by the aid of 
a pump through a system of coils extending through various 
refrigerator rooms. This brine carries back to the brine tank 



72 MANAGEMENT OF DAIRY PLANTS 

the heat it has removed from these rooms; here, in turn, this 
heat is taken up by the vaporizing ammonia in the expansion 
coils. Ice-cream freezers and cooKng tanks may be connected 
with the brine circulation, thus saving the handling of ice for 
cooling purposes and its consequent loss from meltage. It may 
not be advisable, however, to connect the brine directly to the 
cream ripeners as it is apt, in time, to cause the cooling coil of 
the cream vat to leak. The more satisfactory way is to have a 
separate, cooling tank in which the water used for cooling the 
cream is first cooled by the brine. 

3. Brine-Tables. — The brine may be made from either 
sodium chloride or calcium chloride. The latter is most com- 
monly used, owing chiefly to the fact that it does not cause the 
iron pipes and pumps to deteriorate as does the former. The 
brine should be kept at such a strength that it will not freeze; 
therefore, if lower temperatures are desired, the brine should be 
of higher specific gravity. For readily determining what 
strength of solution will give a desired result under a given 
temperature, tables have been published. 

The table on page 73 is that prepared by Van Schaack & 
Sons of Chicago. 

4. Piping Required for Each Method. — The amount of 
piping required for a refrigerator room depends primarily on the 
temperature to be maintained in the room and the temperature 
of the refrigerating medium. Siebel estimates that for direct 
expansion one running foot of 2-inch pipe ^ will take care of 10 
cubic feet of space in rooms that are kept below freezing to a 
temperature of 10° F.; that one running foot of 2-inch pipe will 
take care of 40 cubic feet of space in rooms to be kept at or above 
32° F. or thereabout. It is a general rule in practice to allow 
from one and a half to two times as much surface for brine 
circulation as for direct expansion. 

Ammonia Compressor. — The ammonia compressor is a 
machine which draws the ammonia gas from the expansion 
coil into the compressor, whence it is forced into the condenser 

^ The surface of one running foot of 2-inch pipe is equal to 1.44 feet of i^'^-inch 
pipe, or to 1.8 feet of i-inch pipe. 



MECHANICAL REPRIGERATION 



73 



TABLE II 

Table of High Test Chloride Calcium Solutions 



Chlor. of Calcium 

to I Gallon of 

Solution 


Degrees 
Baume 
6o° F. 


Sato meter 
60° F. 


Specific 
Gravity 
60° F. 


Per Cent 

of 
Calcium 


Freezing 

Point 
Fahren- 
heit 


— 


I 


4 


1 .007 




+31. 




2 


8 


1 .014 


2. 


+30. 




3 


12 


1 .021 


2. 


+ 29. 


}4 pound 


4 
5 
6 


16 
20 
24 


1.028 

1-035 
1.043 


3-5 

4- 
5- 


+ 28.5 
+ 28. 
+ 27. 




7 
8 


28 

32 


1. 051 
1.058 


6. 

7- 


+ 25-5 
+ 24. 


I 


9 


36 


1 .066 


7-9 


-\-22>. 




lO 


40 


1.074 


9- 


+ 22. 




II 


44 


1 .082 


9.8 


+ 21. 


ij^ " 


12 

13 


48 

52 


1 .090 
1 .098 


10.5 
II-5 


+ 20. 
+ 19. 


2 


14 
16.5 


56 
60 
62 


1 . 107 
1. 115 
1 . 122 


12.5 
13-5 
15- 


+ 17. 
+ 14-5 
+ 12. 





17 
18 


64 
68 


I 133 
1 . 142 


15-5 
16.5 


+ 10.5 
+ 8. 


2K " 


19 

20 
21 
22 


72 
80 
84 
88 


1. 151 

1. 160 
1. 169 
1. 179 


17-5 
18. 1 
19. 1 
20. 2 


+ 5- 
+ 2.5 


— 2.5 


3 


23 

24 


92 
96 


1. 188 
I 193 


21.3 
22.3 


— 5- 

— 8. 


3K " 


25 
26 


100 
104 


1.208 
I. 218 


23. 2 
24.2 


— 12. 
—17- 




27 


108 


1 . 229 


25-5 


—22. 


4 


29 
32 


116 
128 


1.250 
1.283 


27. 
29-5 


—54- 


.•) 


34 ■ .- 


138 


1-307 


32.1 





74 



MANAGEMENT OF DAIRY PLANTS 



WaZec Qycc/Zory 






Dischacqe 
Va.lv e-L-y 




Fig. 1 6. — York single-acting ammonia compressor. 



MECHANICAL REFRIGERATION 



75 



and there condensed back to its liquid form. The compressor 
takes care of the first factor in this Hquef action; namely, the 
subjection of the ammonia gas to the pressure necessary for 
liquefaction. The condenser takes care of the second factor; 
namely, the removal of 
heat and the resultant 
condensation to liquid 
form. 

We distinguish be- 
tween two forms of com- 
pressors — the ' ' Single- 
Acting" and the 
''Double-Acting." The 
single-acting compressor 
is always of vertical con- 
struction; the double- 
acting is most commonly 
horizontal, although a 
few of them are of the 
vertical type. 

I. Single- Acting Com- 
pressor. — Fig. 1 6 rep- 
resents the compressor 
cylinder of a single-act- 
ing compressor. The 
gas enters at the bottom 
of the cylinder, passes 
up through the suction 
valve in the piston, and 
by the up stroke of the 
piston is compressed and 
driven out through the 
discharge valve in the 
center of the safety head. The piston and the bottom of the 
safety head, each being faced off square and coming in contact, 
allow a complete discharge of the gas. The compressor of this 
type is incased in a water jacket. The water keeps the com- 




FiG. 17. — Vilter double-acting ammonia 
compressor. 



76 MANAGEMENT OF DAIRY PLANTS 

pressor walls cool and thus removes a portion of the heat in 
the ammonia. 

2. Double- Acting Compressor. — Fig. 17 represents the com- 
pressor cylinder of a double-acting compressor. This cylinder has 
both a suction and a discharge valve in each end of the cylinder, 
and while the gas is being discharged from one end of the 
cylinder the other end is being filled with gas at suction 
pressure. 

3. Advantages of Each Type of Compressor. — The principal 
advantages and disadvantages of each type of compressor have 
been considered by F. Newkirk,i as follows: 

"The single-acting machine has a simpler stuffing box for the 
reason that it is not subjected to high pressure as in case of the 
double-acting machine. The double-acting machine has a deep 
stuffing box which must be kept very tight in order to prevent 
loss of ammonia. This causes much friction on the piston rod 
and requires more oil. This, if not properly separated from the 
ammonia before same enters the ammonia condenser, will be 
carried along to the condenser and reduce the efficiency of 
same. In case of the vertical machine, the piston does not wear 
on one side due to its own weight; the valves are more readily 
adjusted^ so the clearance is reduced to the minimum. It is 
evident that the machine of the least clearance is of the greatest 
efficiency. 

"The double-acting machine, if properly adjusted, does 
nearly as much work in one cylinder as the single-acting does in 
two cylinders. The machine is low down and therefore more 
convenient to look after, and it has only about half as many 
moving parts as has the vertical machine." 

Ammonia Condenser. — This consists of a series of coils 
kept constantly cooled by water applied as a bath or as a trick- 
ling stream. Into these cooled coils the compressed ammonia 
vapor is forced from the compressor, passing through an inter- 
vening oil separator. As the ammonia vapor passes through 
these coils, the cold water absorbs the excess heat from the 
ammonia and the latter collapses and passes out of the con- 

^ Creamery Journal, July i, igii. 



78 MANAGEMENT OF DAIRY PLANTS 

denser in liquid form, thus completing the second and final step 
in liquefaction. 

On its journey through the system, the ammonia has risen in 
temperature owing to heat acquired in two places — the latent 
heat of vaporization taken up in the expansion coils, and the 
heat of compression that represents work done on the ammonia 
by the compressor. Some of this total acquired heat is absorbed 
by the water jacket of the compressor; the remainder passes 
into the condenser and is there removed by the cold water. 

The temperature of the gas is, therefore, higher in the com- 
pressor and condenser coils than in the expansion coils. But 
there is a definite relation between the pressure of the gas and 
its temperature. At a pressure of 15 pounds, the ammonia gas 
has a temperature of 0° F., while at a pressure of 150 pounds it 
has a temperature of 80° F. Consequently, a great disparity 
between the temperature in the condenser coils and that in 
the expansion coils means a corresponding disparity between 
the high pressure in the condenser coils and the low pressure 
(or back pressure) in the expansion coils. The less this dis- 
parity, the more efficient is the working of the machine. Con- 
sequently, the low or back pressure should be reasonably high, 
since the capacity of the machine is governed by the density of 
the gas. The high or condenser pressure should be as low as 
possible, since it requires less power to pump against a low 
pressure, and since the temperature of compression is decreased 
with decreasing pressure. As the temperature of the water used 
for cooling determines the pressure of the gas, the water used 
for that purpose on compressor and condenser coils should be as 
cold as it can be had. 

The most common styles of condenser are the atmospheric 
ammonia condenser and the double-pipe ammonia condenser. 
The former is more economical and is usually placed on the roof. 
The latter is used mostly where the condenser is placed inside. 

Expansion Valve. — The expansion or regulating valve is 
the valve between the receiver and the expansion coil. When 
this valve is opened the liquid escapes into the expansion coil, 
and thus the cycle is completed. 




'a 
c 
c 
u 

7i 

'5 

I 

£ 

a 

'S. 



O 

-a 



o 



8o MANAGEMENT OF DAIRY PLANTS 

Size of Machinery Required. — In determining the size of 
machinery needed, an estimate should be made of the heat 
units to be removed during a period of 24 hours. To this result 
should be added at least 20 per cent for clearance ^ and other 
losses. The size of a compressor is usually designated in tons of 
refrigeration per 24 hours, basing it on the heat units required 
for melting one ton of ice from 32° F. to water of the same tem- 
perature. A 4-ton compressor has, therefore, the capacity of 
removing 2,000 X 142 X 4 = 1,136,000 B. T. U. of heat in 24 
hours. If this amount of work is to be accomplished in one- 
fourth the time, a machine of four times that capacity will be 
required. 

Cost of Producing Refrigeration by Compression. — The 
relative amount of power required for operating an ammonia 
compressor differs inversely with the size of the compressor. 
Thus, a compressor of 10 tons capacity or less usually requires 
two horse power or more per ton of refrigeration. A larger 
machine wiir require proportionately less; while for large com- 
pressors, the power required may be reduced to about one 
horse power per ton of refrigeration. It is safe, however, to 
figure on the size of the engine being one and a fourth times as 
great as the theoretical power required to propel the compressor. 
Bowen 2 estimates the amount of steam consumed by the com- 
mon creamery engine as 40 pounds per horse power per hour. 
If a 6-ton compressor is operated for 24 hours, and if it requires 
a 15-H. P. engine for operating, and if each pound of coal pro- 
duces 6 pounds of steam, then 

Amount of coal consumed in operating compressor 24 hours 

40 X 24 X 15 , 

= = 2,400 pounds. 

6 

Figuring coal at $5 per ton, the cost for coal per ton of refriger- 
ation will amount to one dollar. In addition, there should be 
added the cost of water used for boiler and for the ammonia 
condenser, the cost of labor, of oil, waste, etc. The amount oi 
water required for the ammonia condenser will amount to about 

^ Clearance is the dead space between the piston and the cylinder head. 
2 U. S. Bureau Animal Industry, Circular 209, 1913. 



MECHANICAL REFRIGERATION 8l 

I 1/2 gallons at 60° F. per minute per ton of refrigeration. The 
amount of ammonia used should not exceed one twentieth of a 
pound per ton of ice manufactured in an economically operated 
plant. 

Cost of Making Ice. — The cost per ton for manufacturing 
ice is nearly double that for refrigeration per ton. This is due 
to the fact that, in ice making, the water must first be cooled to 
freezing point, and, after being frozen, the ice must be cooled 
still lower until it reaches the temperature of the surrounding 
brine. 

It is often claimed that natural ice will yield a greater amount 
of refrigeration than artificial ice. There should be absolutely 
no difference if both are properly frozen. In artificial ice made 
from raw water, the cake of ice often has a reddish or, in some 
cases, a milky or cloudy core through the center. The former 
is due to iron; the latter is due to carbonates and sulphates of 
calcium and magnesia. The discoloration may be overcome to 
some extent by agitating the water with air during the freezing 
process. 

ABSORPTION SYSTEM 

General Principles. — This system of refrigeration is based 
on the fact that water has the power of absorbing various 
vapors having a low boiling point, and that such vapors are 
again readily separated from the water by heating the liquid. 

In reality, there is much similarity between the compression 
system and the absorption system. Common to both are the 
condenser and the expansion coils, including the brine tank and 
the entire circulating system. In the absorption system there 
is a pump, but no compressor. The generator, the ammonia 
receiver, and the absorber are also important parts. In addi- 
tion, we have the analyzer, the exchanger, the dehydrator, and 
other parts of less importance which are added primarily to 
make the system more complete in its operation. 

Operation. — This system may be operated without any 
great amount of steam, the only steam required being that used 
for the pump and the exhaust steam for the generator. 



MECHANICAL REFRIGERATION 83 

The strong-aqua tank is charged with aqua ammonia con- 
taining 29 1/2 per cent of anhydrous ammonia. The ammonia is 
pumped from the strong-ammonia tank to the generator, where 
it is heated and the anhydrous ammonia distilled off. This 
ammonia gas enters the condenser where it is condensed, and 
from there it enters the ammonia receiver as liquid ammonia. 
From the receiver, the ammonia is admitted through the ex- 
pansion valve to the brine cooler, where it is again converted 
into a gas, taking up heat from the brine. From the brine 
cooler, the gas enters the absorber to be reabsorbed by the 
water. The absorber and the generator are so connected that 
the water in the generator, from which the anhydrous ammonia 
has been distilled, is again transferred to the absorber and 
thus the cycle is completed. 

The absorption system has not been adopted so generally as 
the compression system, and is used for plants of large capacity 
only. Plants of less than lo tons' capacity have not been con- 
structed on the absorption system. 



CHAPTER VII 

LABOR 

ORGANIZING A STRONG WORKING FORCE 

The organization of a strong working force is most readily 
accomplished by employing capable men, mentally as well as 
physically, by properly training and educating the employees, 
and by creating loyalty among them. 

Hiring the Employees. — When employing men, employ 
such as will eventually work up to more responsible positions. 
The employee who is not seeking additional responsibility will 
never prove satisfactory in any position. The man who is in 
demand is the one who has capacity for work, who will not 
shirk details, who is anxious to learn, and who is of a strong 
moral character. 

To secure better information about men who may be hired, 
some business houses, and among them creameries, submit to 
each applicant a blank to be filled out by himself. Form I repre- 
sents a blank for that purpose used by an Iowa creamery. 
Form II represents a blank that is mailed to the reference 
furnished by the applicant. This application blank, together 
with the references, is filed for future reference, usually under 
the head of the department in which employment is sought. 
Under the department they are filed alphabetically according 
to the names of the applicants. It is convenient to have a 
sheet in front of each department file on which is listed the 
names of the applicants appearing to be most capable. 

I. Employment of Personal Friends and Relatives. — Employ- 
ment of persona] friends and relatives may have some advan- 
tages, but has many more disadvantages. Employees con- 
nected with the management by friendship or family ties often 
create a feeling of dissatisfaction among the other employees. 

84 



LABOR 8$ 

FORM I 



NOTE-Answcr all qu'tatlnns ctaarly In your owl 
hand .rit.ni W« e.pecl and capaclallr raquaal tha 
appllcanla notify ua promptly ahould ha accwpt of t 
pOKltlon through any othor teurc*. 



Ai^pltaton for pnBittxin aH 'BntUvmuk^t 



FuU Nunc _ ,_ 

Poi« 04ce 

Stale. 

Phone or Wire Address r.. . 

Age , ..... ... Single ot Mairied 

NatuNuSly i,: 

How muy yean experience as Gutlermaker ..— . 

Whal Systems (Whole Milk oi Gathered Cream) 

By Whom Employed . 



State How \jMf at Elach Place . 



Slate what Separators yoit have run 

Have you used G>mbined Chums Stale what kind , 

Do you thoroughly understand Babcock~ Testing of Mlk and Cream . 

Do you understand Pasteurizing Whal Pasteurizer 

Hive you operated Starter Cans .......Stale what kind 

Have you operated Cream Rjpeneis Stale what kind 

Can you run Refrigerating Apparatus , 

Whal Salary do you command. »i_ 

Do you use Intoxicating Liquon 

Have you ever been Discharged Give Reasoni 

Can you Respond to Iminediate CaH-. 

Can you keep all Books for Creameiy if necessary 

REFERENCES: 



86 



MANAGEMENT OF DAIRY PLANTS 



FORM 11 



To 



We have received from Mr who gives his age as 

application for position as 

He refers us to you, stating that he was in your employ as 

"from ; to 

Would be obliged if you would furnish the information called for below regarding his record while with 
you. We will consider your reply as absolutely confidential and if occasion affords will be glad to reciprocate. 

Yours truly, 



Per 



QUESTIONS 


ANSWERS 


1. Is the applicant wellksowa to tou. and how long bav^ you 
known him? 




i. Are you connected with him by relationship, or otherwise; If so. 
In what way! 




3. A. Is he. or has he at any time been addicted to the use of liquor, 
or given to gambling. Immorality or other bad liabits? 
B. If so, pftase state what they are and to what e.ttent? 


A. 

B. 


4. Has he ever been suspected of fraud, dishonesty or dishonorable 
conduct? 




5. Has his general conduct been »uch as to entitle him to the con- 
fidence of his employers? 




6. Is he eogagetl or Interested la any business or undertaking at 

present? 




7. Has he ever failed in business; If so, please gi»e circumstances 
and terms of settlement? 




8. If ever in your service, on what date did be enter and leave your 

employ? 


Entered Left 


9. What position did he fill? 




lU. For what cause did he finally leave your employ? 




11. A. While In your employ did hf have the custody of moneys? 
R Were his accounts in satisfactory condition when he left? 


A. 
B. 


12. A. Were his services satisfactory? 

B. Have you reason to consider him. competent to fill the posi- 
tion he Is applicant for? 


A. 
B. 


13. How long and by whom was he employed prior .to his service 
with you? 




14. Was be ever dismissed or suspended from an/ employment? If 
so. why? 




IS. How or by whom was he employed after leaving your service? 





I any fCMnI nntiXM m Udc •I tkti akML 



Signature Duil.ness or Occupation . 

Date Address 



LABOR 87 

The foreman or the superintendent is at times, even without 
realizing it, inclined to favor such employees more than their 
fellow workers and unless they are of exceptionally strong 
character they will often believe that they can get along by 
doing less work and perhaps even work of poorer quality and 
are tempted to take advantage of this circumstance. At some 
cooperative creameries it is customary to employ personal 
friends or relatives of the directors, but it is often found that 
such employees return less in labor than they are paid 
for. 

Training and Educating the Employees. — The superin- 
tendent or other person in charge of subordinate employees 
should take an interest in them and in the way they perform 
their work. If the employees do various kinds of work during 
the day, then it is beneficial to have each keep a systematic 
record of his day's work. To illustrate, a young man who 
started as a helper in a small creamery made a written outline 
of his day's work, even to the extent of marking the time he 
took to perform his various duties. Thus his attention was 
daily called to the quantity as well as to the quality of his own 
work, and as a result he made rapid advances. 

I. Encouraging Originality. — The management should en- 
courage originality among its employees. Wherever the leader 
of an establishment has developed his own originality and that 
of the employees he often finds this to be a source of great 
income to the employers. In order to promote originality the 
employer should reimburse his employees for new ideas and 
inventions in proportion to the value thereof to the firm. 
Some large industrial concerns are offering valuable premiums 
for useful ideas and inventions made by the employees. Such 
inventions are usually along the particular line of work in 
which the employee is engaged. The same poHcy along similar 
lines is being adopted by manufacturers of dairy products. It 
is deserving of even wider adoption, for it gives added pleasure 
and dignity to labor and it stimulates the employee to more 
effective work because he likes to work and not because he has 
to. Originality is very important to consider in the organi- 



88 MANAGEMENT OF DAIRY PLANTS 

zation of a working force; it is often this originality which 
determines the success or failure of an enterprise. 

2. The Factory School. — The factory school has come into 
existence during recent years. To our knowledge the first 
school of that kind was established by a large corporation of 
Dayton, Ohio, in 1892. This company was organized in 1884. 
Its business increased from year to year, but it found its organ- 
ization to be weak; its employees had no heart in their work. 
The management conceived the idea of establishing a factory 
school to teach the employees about the business and to interest 
and encourage them. The first school met in an old church 
which the company purchased and had fitted up as a lecture 
hall. The lectures were illustrated with pictures, a plan which 
has been continued in the company's schools ever since. On 
July 8, 191 2, the company reported that it had for educational 
use over 30,000 stereoptican slides and over 150,000 feet of 
motion-picture film covering a variey of subjects. The school 
long ago was removed from the old church building to a new 
school hall erected at a cost of over $150,000 and with a 
seating capacity of 800. This school is now divided into 
about twenty separate divisions. The company considers that 
this school is responsible in a great measure for its remarkable 
growth. 

The first creamery schoolroom built in connection with a 
private creamery was that of a large creamery of Omaha. It 
was completed in 191 1. In this room the superintendent, 
manager, and directors meet with the employees to discuss 
value of system, methods of systematizing the work, etc. Here 
the employees begin to learn the value of thinking for them- 
selves and to express their ideas in language understood by 
others. 

Each subject taken up in a factory classroom before a group 
of employees should be most exhaustively discussed by the 
employees as well as by their employers and supervisors so that 
before the discussion closes the subject is fully understood by 
all. When all have a clear understanding of the work in general 
there will be more harmony and better work will be done by 



LABOR 89 

the individual employees. Meeting of employees for educa- 
tional purposes should be held weekly. Other meetings may be 
held, such as for the education of the superintendents, salesmen, 
etc. 

It may be argued that such subjects as market requirements 
and the science of butter making and ice cream making should 
not be given as a general course of instruction to employees. It 
has been found, however, that lectures of that nature are of 
interest to the entire organization and particularly to the 
manufacturing department, for it is very important that the 
butter maker should know about the demands of the buyers; if 
he has this knowledge he will be better able to satisfy their 
demands. 

3. Creating Loyalty among the Employees. — The employer 
who is taking an active interest in the welfare of his employees 
will invariably succeed in gaining their confidence and loyalty. 
It is to the advantage of the business concern to have the em- 
ployees feel keenly that they are part of the organization. It 
is also important that there should exist the very best feeling 
among the employees so that the work of the different depart- 
ments may be carried on harmoniously. Social gatherings, 
picnics, and entertainments of various kinds are becoming more 
customary as factory functions. The employees thus become 
better acquainted and warmer friends, and they become more 
loyal to the company by which they are employed. 

Organization of the Working Force. — It is not necessary 
to consider the labor organization of a small factory where the 
secretary and the butter maker do all the work, nor of a plant 
which hires from one to three helpers. In both cases a man of 
ordinary intelligence can readily organize such a small force 
so that it will render the greatest amount of service. 

I. Division of Responsibility. — But as the creamery industry 
becomes more centralized, the factories become larger and the 
organization of labor becomes a more complex problem. This 
may be seen by a glance at the following chart which illustrates 
the more common form of organization of labor in a large plant 
for the manufacture of butter and ice cream. 



go 



MANAGEMENT OF DAIRY PLANTS 



Superintendent of 
manufacturing 



Directors 

General 
manager 



Butter maker 



Ice cream maker • 



. Chemist 



Superintendent of shipping and re- 
ceiving 



Superintendent of field department 

Superintendent of sales department 
Purchasing agent 

Auditor 



Asst. butter makers 
Cream receiving dept. 
Helpers 

Asst. ice cream makers 
Helpers 

Testers 
Helpers 

Shipping clerk " 

Receiving clerk 

Order clerk 

Drivers 

Barn employees 

Traveling solicitors 
Station operators 
Route drivers 

TraveUng salesmen 
City salesmen 
Sales correspondents 



' Bookkeepers 
Cashier 
Collectors 
Pay roll clerks 
Clerks on cost records 



The general manager is held responsible to the directors and 
the superintendents are held responsible to the general manager 
for their respective departments. The superintendent of the 
manufacturing department will in turn hold the butter maker 
and ice cream maker responsible for their respective divisions. 
The object is to hold each individual employee responsible for 
the performance of a certain task. The organization thereby 
becomes so permanent that even if the manager or superintend- 



LABOR 91 

ent is absent the work in the departments will be carried on 
with the same degree of accuracy as if he were present. 

The superintendent should maintain this perfection of or- 
ganization and outline the work for his subordinates. He 
should always know the details of the work allotted to 
each individual employee in his department and the length 
of time required for each one to complete his particular 
task. 

The superintendents should hire the employees for the 
respective departments. Some managers prefer to hire the em- 
ployees themselves. The objection to that system is that under 
it the superintendent will not be held in as high esteem and 
respect by his subordinates and his work may therefore suffer 
in efficiency. The manager naturally hires the superintendents, 
but he should give them full authority to hire the men for their 
respective departments. However, if the superintendent is a 
man of diplomacy and unselfishness, he will consult the manager 
in reference to the man he is about to employ, as to qualifica- 
tion, salary, etc. The superintendent of the manufacturing 
department should likewise consult the butter maker or the ice 
cream rnaker, for he should not place a man in their divisions 
in whom they have no confidence. 

The directors should keep in touch with their employees and 
preferably call them by their given names. Their position 
toward the employees is not that of giving orders but more 
that of educators, as orders are best given by the immediate 
superior of an employee. As educators, they will exercise 
greater influence over their employees and they will build a 
stronger organization. 

Surety Bond for Employees. — An employee holding a re- 
sponsible position in charge of money or valuable property 
should give to his company a surety bond to the amount deter- 
mined by the directors of the company; by this the employer is 
insured against loss due to fraud or dishonesty of the employee. 
Such a bond should be purchased through one of the leading 
surety companies and usually the employer pays the annual 
premium. 



02 MANAGEMENT OF DAIRY PLANTS 

PAYING FOR LABOR 

Productive and Nonproductive Labor. — Productive labor 
is the active manufacturing labor. In the creamery and ice 
cream factory such labor is produced by the butter maker, 
ice cream maker, and their subordinates and is charged 
directly against the department in which they labor. The 
superintendent of the manufacturing department will be con- 
sidered under productive labor if he himself is engaged in the 
work of manufacturing; if he is merely supervising the work in 
the manufacturing department then his time will be considered 
under the head of nonproductive labor. Nonproductive labor 
includes the labor of clerks, bookkeepers, superintendents, etc. 
It is noncreative labor, but it is required for making the organi- 
zation more efficient. Such labor may be charged directly 
against a definite department for such as are working for that 
department exclusively, but usually the employees engaged in 
nonproductive labor are working for more than one department 
and their wages must therefore be proportioned among the 
various departments. Such labor is often known as indirect 
labor. 

Payment for labor may be according to one of several sys- 
tems; the day- wage system, the piecework system, and the 
premium system. 

The Day- Wage System. — This system provides for a def- 
inite compensation per unit of time. It is the oldest of the 
three systems mentioned, yet it has few advantages to its credit. 
The employees, as a rule, are more particular and careful when 
hired for day wages, as they are not so tempted to sacrifice 
quality of work for speed. The disadvantages are mainly that 
the employer must depend on the integrity and skill of the 
individual workman and for that reason the standard of effi- 
ciency for each employee is different and the manufactur'jr has 
no fixed rate of cost per unit of labor. By making a difference 
in the rate of wages between employees doing the same kind of 
work dissatisfaction is created among the employees. This 
system is entirely satisfactory where each employee has a def- 



LABOR 93 

inite amount of work outlined for the day and is responsible for 
the completion of such work. 

The Piecework System. — This system provides for a defi- 
nite compensation per unit of labor. The manufacturer has the 
advantage that he has a fixed rate of cost for labor and that 
the same amount of work will be accomplished in less time 
and therefore save in factory cost. The piecework system will 
invariably decrease the cost of labor per unit. The only disad- 
vantage to the manufacturer is that the employees are more 
tempted to sacrifice quality for speed. 

To the employee this system appeals more strongly than 
the day-wage system. The industrious and skilled laborer re- 
ceives his advance over the less ambitious and inexperienced. 
Under this system the employees feel greater freedom and inde- 
pendence, which tend to create satisfaction. 

In deciding on a piece rate great caution is necessary, for 
if the rate is too high and it is found necessary to reduce it 
later dissatisfaction will always result among the employees. 
A rate should not be fixed before the matter has been thoroughly 
studied through a series of experiments. 

The Premium and Percentage System. — This system pro- 
vides for the payment of the entire salary or a part thereof on 
some premium or percentage basis. It is customary in some 
creameries to pay the butter maker a comparatively small 
monthly wage and a certain per cent of the profit which will be 
turned over to him annually or semiannually. When such agree- 
ments are made with the butter maker the basis of paying for 
butter fat should be fully understood and should be regulated by 
the butter quotations of one of the leading butter markets. If 
the butter maker is also responsible for the soliciting of cream 
patrons, then he may be allowed a certain per cent on business 
from new customers or on business increase, or he may receive a 
definite fraction of a cent per pound of butter manufactured. 
He may also receive a premium for quality. The percentage 
system may be applied to all of the employees. A definite por- 
tion of the annual profits might be set aside to be divided among 
the employees in proportion to their earning capacity. The 



94 MANAGEMENT OF DAIRY PLANTS 

monthly wages are usually so adjusted that it would be fair to 
use them as a basis for dividing the earnings belonging to the 
employees. 

Such work as butter wrapping usually comes under the head 
of piecework, but in connection therewith the premium system 
may be adopted to advantage by paying a certain rate for the 
first thousand pounds, a sHght increase for the second thousand, 
still another increase for the third thousand, etc. By this 
method the employees should produce still greater results than 
by a regular piecework system. 

Haulers are successfully employed on the percentage system. 
Any increase in salary may be based on the accuracy of their 
work regarding weighing and sampling; it may be based on an 
increase in the amount of butter fat received on a route over 
the previous year, or it may be paid on butter fat received from 
new customers, or finally, it may be paid on the quality of 
cream delivered by the driver, which encourages the hauler to 
care properly for the cream while on the road and to instruct 
properly the patrons in the matter of care of cream on the farm. 

The premium and percentage method, if properly managed, 
should prove a big success. It makes the employee feel as if he 
had a financial interest in the business and as a rule the com- 
pany receives from such an employee the best service he is able 
to render. 

Prompt Pay. — The employees are usually in need of the 
money as soon as it has been earned and if they are paid 
promptly it creates a better feeling toward the employer which 
means better work and a financial gain to the company. If the 
employees are paid monthly they should receive their wages 
not later than on the first day of the following month. It is 
more satisfactory to pay all employees at the close of each week. 
Some business concerns are paying their employees on the 
tenth, fifteenth, or twentieth of each month for work done 
during the previous month. Such a method of withholding the 
employees' money can scarcely be considered businesslike and 
there is no good reason therefor, as in a well-managed business 
establishment the employees' pay roll is completed at the close 



LABOR 



95 



of the month. Therefore when such a system is employed it 
either shows poor management or that the company is with- 
holding the employees' money for the sake of making use there- 
for in their business, which can hardly be considered legitimate. 

Time Keeping. — In creameries it is perhaps most satis- 
factory for the superintendent to keep a card for each employee 
working as a day laborer. The time clock is used in some of the 
larger creameries, but it is more satisfactory if such a feeling 
can be created among the employees that the time clock will be 
unnecessary. The time clock, regardless of how useful it is, 
may impress the employees as being an indication of mistrust 
and as a result may destroy loyalty on the part of the em- 
ployee. 

Reducing the Cost of Labor. — It is not so important how 
much per day or month a man is paid, but his labor cost per unit 
and the quality of the work he produces are of utmost impor- 
tance. One butter maker is easily worth $25 or $50 per month 
more than another, but the manager will not know the difference 
unless he keeps a record of the labor cost per unit and of the dif- 
ference in quality of goods produced by the two butter makers. 

I. Reducing Cost of Productive Labor. — In a well-managed 
creamery the productive labor will not stand much reduction. 
The careful superintendent adjusts as nearly as possible the 
amount of labor to the amount of goods manufactured. It is 
quite essential that the superintendent keep a record of the 
wages paid by his department, figuring therefrom the cost per 
unit manufactured. 

FORM III 

Creamery Productive Labor Cost Record — Butter Department 



Date 


Regular 
employees 


Extra 
employees 


Total 
cost 


Lbs. 
butter 
mfg. 


Cost 
per lb. 

butter 


Remarks 































96 MANAGEMENT OF DAIRY PLANTS 

The information furnished by Form III keeps the super- 
intendent properly informed daily. When the labor cost per 
pound of butter increases he will make an effort to dispose of 
some of the extra men. If other departments are operated by 
the same firm he may be able to turn them over to other depart- 
ments needing men at that particular time. 

At the close of the month the average daily cost of regular 
and extra employees is figured as well as the average amount of 
butter manufactured for the month and the average cost of 
labor per pound of butter manufactured. A comparison 
should be made with similar reports for the corresponding 
month of the previous year. By noting the rate of increase or 
decrease in amount manufactured between corresponding 
months it will be comparatively easy to determine as to the 
amount of labor required for the following month. 

2. Reducing Cost of Nonproductive Labor. — The cost of non- 
productive labor should be carefully regulated and the work of 
each employee whose labor is thus classified should be analyzed 
and the profit to the company from the labor of the employee 
in question should be determined as nearly as possible. Book- 
keepers and certain clerks are indispensable, although their 
value to the company is not readily determined. There are 
other nonproductive employees in the office and around the 
factory from whom a definite return is expected. Before en- 
gaging an employee for doing nonproductive labor the following 
points should be considered: 

1 . Will the labor of this employee show direct and immediate 
result? 

2. Will the company make any profit on such labor? 

3. Is it possible to accomplish this work with the present 
working force? 

4. Is the nature of the work such that the employee may be 
engaged on a percentage basis? 

Distributing the Cost of Labor. — Productive labor is gener- 
ally charged directly against the respective departments. The 
nonproductive labor of an employee may be charged directly 
if the entire time of that employee has been devoted to one 



LABOR 97 

department. The employee may work for more than one de- 
partment, but the nature of his work may be such that a definite 
amount of time is devoted to each department; thus his salary is 
divided among the different departments for which he has 
rendered service in proportion to the time devoted to each. The 
work of some employees is of such a nature that a satisfactory 
division of the cost of their labor is almost impossible. Con- 
sider as an example the work of the bookkeeper, the cashier, 
the order clerk, and the shipping clerk; they are working for 
the different departments of the factory at the same time and 
it is difficult to determine the amount of time devoted to each. 

In the case of the .order clerk it might be possible, but perhaps 
not practical, to divide his time by counting the orders written 
for each department and taking for granted that it requires the 
same unit of time for writing an order for one department as for 
the other. 

Nonproductive labor may be divided among departments on 
the basis of the amount of sales made by each department. 
Consider for example that there are three departments — butter, 
ice cream, and sweet cream. The sales of butter amount to 
$10,000 for the month, ice cream to $1,000, and sweet cream to 
$500. The cost of nonproductive labor for the month amounts 
to $115, then the amount of this cost to be carried by each 
department is in proportion to the total sales, as follows: 

10,000 

Butter department = $115 X = $100. 

11,500 

1 ,000 

Ice cream department = $11^ X = $10. 

11,500 

500 

Sweet cream department = $115 X = $5- 

11,500 

Through a careful study of the various departments it is 
soon learned that a direct proportion in accordance with sales 
is not absolutely satisfactory, as it requires a greater amount 
of nonproductive labor for one department than for the other 
on the same volume of business. It may be found that the non- 



98 MANAGEMENT OF DAIRY PLANTS 

productive labor required for the manufacturing and marketing 
of $2.00 worth of butter is equivalent to the labor required for 
manufacturing and marketing $1.00 worth of ice cream and that 
$1.00 worth of cream requires the same amount of nonproduc- 
tive labor as $2.00 worth of ice cream. In that case the figures 
by which to proportion the nonproductive labor in the above 
problem are as follows: 

Butter department pays $115 X — '- = $82.14. 

14,000 

Ice cream department pays $115 X ^ = $16.43. 

14,000 

. . . 2,000 . ^ 
Sweet cream department pays $115 X = $16.43. 

14,000 

No definite rules can be offered by which to make the proper 
distribution of nonproductive labor, as that is governed largely 
by the nature of the business as well as by local conditions, but 
the manager should make a thorough study of the problem and 
place the cost as nearly as possible where it belongs. If he does 
not do this the statements in reference to cost of the depart- 
ments will be misleading. 

When proportioning the cost of labor at the close of the 
month a permanent record should be preserved giving the 
monthly cost of direct and indirect or proportionate labor 
(Form IV). 



LABOR 



99 



FORM IV 

Creamery Proportioned Yearly Labor Record 





Butter Dept. 


Ice Cream Dept. 


Sweet Cream Dept. 






Direct 


Propor- 
tionate 


Direct 


Propor- 
tionate 


Direct 


Propor- 
tionate 


Total 


Month 






^ 


a:; 




"El 

Is ^ 


e5 


So? 




'So 




Is 




Jan. 




























Feb. 




























Etc. 





























CHAPTER VIII 

PURCHASE OF MILK AND CREAM 

SYSTEM OF DEALING WITH THE PATRONS 

The buyer of the raw material should be a good judge of 
human nature. When calling on a patron or a prospective 
patron it is advisable to start a conversation along lines which 
are of interest to the producer. The condition of the farm 
buildings, lawn, and fields, as well as the appearance of the 
farmer himself, should interest the solicitor, and assist him in 
determining what topic of conversation is likely to be of greatest 
interest to the person. The solicitor should have the highest 
regard for the ideas of his fellow men, for even though they 
may not coincide with his own, by approaching them on some 
subject in which they are interested he is assured of a hear- 
ing and it should then be possible for him, if he uses good judg- 
ment, to present his own case in an acceptable manner. 

Paying for Milk and Cream on Quality Basis. — It is evi- 
dent that cream which is of good quality is worth more money 
than that which is of poor quality. If butter is made from the 
separate lots the butter made from the best cream will invariably 
sell for the most money. Therefore the manager should, as 
nearly as possible, pay for the cream according to what it is 
worth if made into separate lots of butter. The creamery pay- 
ing the same price for inferior as for good cream is encouraging 
and paying a premium on carelessness which will tend to lower 
the quality of raw material instead of improving it. 

I. Grading the Cream. — Some creameries accept only what 
is called first-grade cream, others receive first and second grades, 
while a third will receive cream grading as first, second, and 
third. No general classification of grades has been recognized 

lOO 



PURCHASE OF MILK AND CREAM 1 01 

as standard, as a standard which is practical for one state or 
locality might not be at all practical elsewhere. But in the 
leading dairy districts it is generally considered that cream 
classified as first grade should be what is called sweet cream, 
containing not to exceed 0.20 or 0.25 per cent acid and be free 
from taint or foreign flavors. Second-grade cream is generally 
understood to be cream of a higher acidity; it may even include 
cream of a sharp acid flavor but should be free from undesirable 
foreign flavors. Cream below second grade in quality should be 
classified under the head of third grade. 

At some creameries the acidity is the only factor on which 
the quality is based, while other creameries have a more elabo- 
rate method of cream judging, exemplified by the following 
method adopted by the Iowa State College: flavor, 45; acidity, 
25; richness, 20; body and cleanliness, 10. 

A. Flavor. — Flavor is judged by tasting the cream and by 
grading it in accordance with the quaHty of butter that may be 
made from it under ideal conditions. 

B. Acidity. — Cream is scored perfect on acidity when con- 
taining 0.2 of I per cent acid or less. For each o.i of i per cent 
acid in excess of this amount should be deducted three points 
from the perfect score. 

The acidity of the cream may be determined by a decinormal 
alkali, using phenolphthalein as an indicator, or by an alkali 
solution prepared from alkali tablets. It is often most conven- 
ient to prepare the solution of such a strength that it will be 
applicable for the rapid determination method. By this method 
the solution is prepared by adding one, two, or three tablets 
to each ounce of water. For taking the sample of milk or cream 
to be tested, use is made of a dipper of the same size as a No. 
10 cartridge. The same amount of the prepared solution is 
added. If the mixture, after being thoroughly mixed, is pink 
the milk or cream is as sweet as required. If the mixture is 
white the milk or cream contains a higher degree of acidity 
than is desired. If we adopt a standard of i/io per cent acidity 
then a solution is prepared by adding one tablet to each ounce 
of water; for a 2/10 per cent acidity standard two tablets are 



I02 MANAGEMENT OF DAIRY PLANTS 

used; for a 3/10 per cent acidity standard three tablets are 
used, etc. 

C. Richness. — Cream testing 28 per cent of fat or above 
will receive a perfect score on richness. One point will be de- 
ducted for each per cent below 28 per cent. 

D. Body. — The body should be smooth and uniform. It 
may be injured by being partly churned, by being frozen, or 
by being curdy. Cleanliness of the cream and container is 
considered in this connection. 

2. Market Value of Various Grades of Cream. — The market 
values of the various grades of cream fluctuate in accordance 
with market conditions as well as with local conditions. At a 
time when there is a scarcity of butter on the market a butter 
made from a second-grade cream may sell for nearly as much 
money as the butter made from cream of the highest quality. 
When there is an oversupply of butter there is a wider range in 
price between first and second grades and the second-grade 
cream is then of less value as compared with cream of first 
grade. Local conditions may afford opportunities for disposing 
of the lower grades of butter at a comparatively high price. 
Therefore it is impossible to establish any set rule to which all 
creameries might be required to conform. By making a thor- 
ough study of the local conditions in a definite locality and 
considering them with the more general conditions it is usually 
possible for the creamery manager to settle on some definite 
basis by which to pay for cream of the various grades. When- 
ever practicable it will be most satisfactory to make remittance 
for the cream after the butter has been sold, and then remit for 
each grade in proportion to the returns. The difference made 
between cream of different grades varies from nothing to five 
cents per pound of butter fat. Some creameries refuse to re- 
ceive any milk or cream which will not grade as first. This 
system is advisable wherever possible. It is generally conceded 
that it is very seldom advisable to accept third-grade cream. 

Eliminating Business Secrets. — There is no business con- 
cern that is depended on for square dealing to a greater extent 
than the creamery. The producers deliver their milk and 



PURCHASE OF MILK AND CREAM IO3 

cream usually without any definite knowledge of the amount 
of butter fat it contains or the price it will bring. They depend 
on the management of the creamery for a square deal. If the 
manager allows any ground for suspicion it will eventually 
result in a big loss in patronage. It is, therefore, of importance 
that the creamery maintain the unlimited confidence of its 
patrons. This is most readily accomplished by the manager's 
willingness to have the patrons become familiar with the 
method of management so far as it interests them. 

The most common cause for misunderstanding between 
the patrons and the management of a creamery is found in 
weighing and testing. The weighing should be done in the 
presence of the patron, if possible, and the manager should 
encourage his patrons to be present as often as possible when 
the testing is done. If it is found impossible to have the patrons 
witness the weighing and testing then it is advisable to encour- 
age them to buy their own scales and hand testers. If attempt 
in that direction also fails, it may be to the advantage of the 
creamery to keep a few sets of spring balances and testers on 
hand to lend to such patrons. A dissatisfied patron should 
never be allowed to discontinue on a mere suspicion of dis- 
honesty. It is usually possible for the scrupulous business 
man, by methods similar to those mentioned, to convince his 
patrons of the integrity of his firm. 

Promptness in Dealing with the Patrons. — The manager 
of a creamery as well as all of his subordinates should be prompt 
in all matters pertaining to the business. The drivers collecting 
milk or cream should call at each farm at definite, prearranged 
days and hours. Neglect on the part of the driver in complying 
with this requirement will invariably result in loss of patronage. 
Checks for products received should also be delivered at a definite 
time. If checks for milk or cream are sent through the mail 
they should be mailed on a definite day so that the patrons will 
always have the satisfaction of knowing when they may expect 
to receive remittance. 

The cash system of paying for cream makes promptness 
in the matter of remittance a necessity. This system is there- 



I04 MANAGEMENT OF DAIRY PLANTS 

fore a good educator for the manager who considers promptness 
to be of secondary importance. In some locaHties the cash 
system is attractive to the producers, but to the manufacturer 
it has the disadvantages that it increases the cost of bookkeep- 
ing, the cost of labor in the testing room, and it increases the 
amount of capital required for carrying on the business. In 
some territories it is unnecessary to pay cash for cream, provid- 
ing the company has a satisfactory standing financially. A 
cooperative creamery usually pays once or twice monthly, but 
the payments, regardless of when they are made, should always 
be made promptly on a definite, prearranged day. Instead of 
paying cash fox cream it is usually possible to arrange with the 
patrons for paying the day following delivery. By that system 
the manufacturer will economize in labor, as the testing can all 
be done at the same time. The same is true about making out 
the checks and other records. 

Follow-up System for Securing Patrons. — When the solici- 
tor has become acquainted with a producer but has been unable 
to buy his raw material, he should carry on a systematic cam- 
paign until the producer eventually decides to sell him his 
products. 

In carrying on a campaign for patrons it should be the object 
of the solicitor first to find out who are the leaders of the com- 
munity, as it is to his interest to have these men fully under- 
stand his proposition. A solicitor who has a good, fair, and 
square proposition to make to producers will always be most 
readily received by the more intelligent of the farmers and it is 
that class of people that usually command leadership. There- 
fore when the leaders take kindly to a proposition it is an indica- 
tion of good progress. The solicitor should not, however, be 
deceived and work with people who expect to receive such 
personal advantages as will not be shared with the others who 
later may become patrons. 

I. Map of the Territory. — The buyer of the raw material 
should have systematic and simple but comprehensive records 
from which he can readily obtain desired information in refer- 
ence to his territory. A map of the territory should be made 



PURCHASE or MILK AND CREAM 



lOS 



from information received from the solicitor. For that purpose 
a blank divided into squares is convenient (Fig. 21), each 
square representing a section. A creamery manager should 
have so complete a control over the work in his territory that 





%r Carr 










% C f:ea'^er 




• f /Pf^odes 








C. iMT^Ains • 


• >3 ^afan 


C^fi-^^f/?r H 


%3fMarA^ 






TJ Afci/-""o< 


• T.ef(h^ # 


0v5 ^o^tan 

1 

































Fig. 21. — Map of the territory. 

he can produce maps of all routes showing location of patrons 
on each route, of patrons delivering their own cream, and farm- 
ers with whom the creamery is not yet dealing. The latter 
may be marked with a prominent lead pencil mark which can 
readily be removed when they become patrons. The manager 
will, from a glance at such a map, have a fair understanding 



loO MANAGEMENT OF DAIRY PLANTS 

of the condition of his territory and know where the most vigor- 
ous field work should be conducted. 

2. Card Records. — Card records consisting of three different 
files will be useful: File A, active patrons; File B, discontinued 
patrons; and File C, prospective patrons. The cards of active 
patrons may be filed alphabetically, divided under routes or 
stations. These cards should be removed from one file to 
another as they become patrons or discontinue. A card 4 inches 
by 6 inches should be large enough. Form V will serve as an 
illustration. 

FORM V 

Creamery Field Record 

Name Address 

Route No. of cows 

Disposition of product 

Reason for not selling to us 

Called on him, dates 

Result Remarks 

Wrote, dates 

Result 



Started to sell to us, date 

Discontinued, date 

Cause 



By making a comparison between this card and the territory 
map the manager is enabled to direct the field work from his 
office desk. He can start a new man and furnish him with all 
necessary information in reference to the parties whose patron- 
age he is soliciting. If the solicitor receives a promise from one 
of the prospective or discontinued patrons that he will be ready 
to deliver his products at a certain time, then the party in charge 
of the field work should keep a record of such a promise. 
This can be done most readily by what is called a tickler, which 
is merely a small card file that is intended to be kept on the 
office desk. This file contains index cards for the twelve 



PURCHASE OF MILK AND CREAM 



107 



months, each with an index card for each day of the month. 
Cards containing future dates are filed at the proper places, and 
each morning before starting on the regular routine of work, 
the cards filed under that particular day are given due atten- 
tion. 

3. Daily Record of Active and Discontinued Patrons. — It 
is to the advantage of a creamery to keep a complete record 
of active and of discontinued patrons. Some creameries keep 
a separate record of each so that they may be informed imme- 
diately when a patron discontinues. It is less difficult to have 
him resume shipping if an effort to do so is made at once. The 
following form may be used for that purpose. 1 

FORM VI 

Monthly Record of Patrons — July 



Name of Patron 


Day of Month 


I 


2 


3 


4 


5 


6 


29 


30 


31 


J Jones 


30 


34 






23 














S. Mann 




40 






38 











On this report are made daily entries of tests; by making 
this entry for each shipment it becomes easy to locate errors 
made in the testing room. As an example consider the record 
of J. Jones (Form VI) ; it is quite possible that a mistake was 
made on July 5th and it is therefore the duty of the manager 
to write Mr. Jones concerning it in order to have the matter 
adjusted satisfactorily to the patron. Report (Form VI) is 
furthermore of importance in the matter of determining the 
frequency of delivery and may furthermore be used for check- 
ing the quaUty of cream delivered by each patron by also 
marking score or grade of each shipment or delivery. 

1 Securing patrons by correspondence will be considered in chapter on "Business 
Correspondence. ' ' 



I08 MANAGEMENT OF DAIRY PLANTS 

SYSTEMS OF MILK AND CREAM PURCHASE 
AND DELIVERY 

Frequent delivery of the raw product to the creamery is 
one of the principal prerequisites for the manufacture of a 
desirable product. It has always been customary to make fre- 
quent deliveries to a whole milk plant. There the milk is 
usually delivered daily during the summer season and from 
three to four days a week during the winter season. Such 
frequent deliveries are made because the producers realize that 
they will sustain a financial loss if the deliveries are less fre- 
quent, as milk containing a high degree of acidity cannot be 
properly skimmed. The older milk is also more variable in 
quality and therefore less desirable as a feed for calves. 

The attitude of the producer in reference to frequency of 
delivery is somewhat different in the gathered cream territories. 
This is brought about partly by the manufacturer who some- 
times in his greed for more business informs producers that it is 
unnecessary to make daily deliveries when selling cream. His 
statement is partly true, inasmuch as the cream does not deteri- 
orate as readily as does milk. But cream absorbs odors more 
readily than milk, and because it has less bulk than milk cream 
is often left in the kitchen or in the cellar, places where the 
milk is very seldom kept, and it will therefore soon acquire 
undesirable flavors. If the frequency of delivery had not been 
lessened by the introduction of the hand separator, dairying as 
a whole throughout the United States would have gained in 
profit and prestige. 

The system of organization of territory may for convenience 
be considered under the heads of: The individual system, the 
cooperative system, the route system, the station system, the 
local agent system, and the cooperative selling system. 

The Individual System of Delivery. — Under this system 
the producer delivers his own milk or cream to the creamery 
in person or ships it by rail. 

I. Delivering of Cream in Person. — At many local cream- 
eries the producers deliver their own milk and cream and for 



PURCHASE OF MILK AND CREAM IO9 

the local creamery there is possibly no more satisfactory sys- 
tem. It has the advantage that full remittance is made without 
deduction for hauling; it brings the producer in close touch 
with the butter maker or manager and each learns to appreciate 
the work and effort of the other. If the product delivered by a 
patron is of poor quality the butter maker can discuss the 
matter directly with him and make valuable suggestions as to 
how such difhculties may be overcome. 

The main criticisms that may be offered against this system 
are: it may increase the cost per pound of butter fat delivered 
by the route driver. This objection is naturally confined to 
territories in which routes are also operated. The individual 
system is not far-reaching; farmers living from five to six miles 
from the creamery can be interested in this system only with 
difficulty. The busy farmer finds delivery of cream a burden 
and as a result he often starts to make butter on the farm; such 
a patron is often slow to return. The time required for han- 
dling a given amount of milk or cream at a creamery is some- 
what increased by the individual system. 

2. Producer Shipping Cream by Rail. — The system of ship- 
ping cream by rail has become rather popular during recent 
years. By this system it is possible for the producer in a more 
thinly settled district where a creamery cannot be operated 
profitably to sell his butter fat at market price. Formerly such 
farmers were compelled to sell their butter in the country store. 
The system has met opposition, as it is claimed that it reduces 
the patronage of the local creamery. It is hardly logical that 
an up-to-date local creamery should experience much difficulty 
on that account, as the local creamery has the advantage of 
saving the shipping expenses and receives cream of better 
quality. 

3. Creamery System of Handling Individual Shipments. — A 
creamery receiving individual railroad shipments should imme- 
diately upon receipt of the first shipment from a producer write 
a personal letter to that shipper. This letter should be writ- 
ten in such a tone that it will encourage future shipments. It 
should also contain a report of weight and test of cream received 



no MANAGEMENT OF DAIRY PLANTS 

and value of butter fat. It should explain in detail the cream- 
ery's method of paying, of sending reports, and of returning 
empty cans, and furnish any other special information which 
might be of value to the shipper. 

A. General Letter of Information. — General letters of 
information in reference to care of milk and cream, causes of 
variation in test of milk and cream, should be mailed to the 
patrons. Such a letter should be brief enough so the patrons 
will take time to read it. It should cover merely the essential 
points. Letters in reference to care of milk and cream might 
present the following ideas : First, the value of cooling the milk 
and cream immediately and before it is mixed with cream from 
the previous milking, and of leaving it in fresh, cold water at a 
place where the atmosphere is pure; second, the advantage of 
skimming rich cream; third, care of cream separator and uten- 
sils, discussing the value of using slacked lime or washing pow- 
der in the dairy for cleaning purposes; fourth, the value of 
keeping the barn and cows clean; fifth, the value of using a 
sanitary milking pail, if a practical sanitary pail can be fur- 
nished the customers addressed. Other points on the care of 
milk and cream may be discussed in such a letter, but all 
should be offered in the form of suggestions and not in the form 
of rules and no suggestion should be offered unless the writer is 
able to prove that it will be to the advantage of the producer 
to follow it. 

B. Shipping Tags and Seals. — Shipping tags and seals are 
usually furnished by the creamery. A shipping tag should bear 
the creamery firm name and address and blank lines to be filled 
in by the shipper with his name, shipping station, and post 
ofhce. Some creameries have a rubber stamp made for each of 
their shippers and stamp the tags with the name and address of 
the patron. This tag will be used for the following shipment. 
A new leaden seal is also dropped in the empty can and this is 
used by the shipper, who has a seal press furnished by the 
creamery, perhaps bearing the creamery name on one side and 
the number on the other side. 

Other forms of tags are used, such as brass tags. These are 




u 

N 

H 
U 
< 
X, 
B3 



0) 



73 



O 

(X4 



112 



MANAGEMENT OF DAIRY PLANTS 



furnished by the creamery. The addresses of the creamery and 
patron are pressed into the brass and in order that they may be 
read easily the letters are filled with black paint. The brass 
tag may be soldered onto the breast of the can or fastened to the 
can with a wire loop about four inches in length and two inches 
in width. The ends of this loop are riveted together. The cover 
of the can is often fastened to the can with this loop. The ad- 
vantage thereof is that the covers of the cans will not be ex- 
changed; the disadvantage is that the can is more difficult to 
clean when the cover is attached, especially if a can-washing 
machine is used. 

C. The Cream Can. — The cream can, before being returned, 
should be properly marked. It should have the name of the 
shipper painted on the breast, and below, in large letters, the 
name of the shipping station. The weight of the empty can 
with cover should be painted on the can, as that will facilitate 
the work of the one who receives the cream at the creamery. 
The creamery manager should insist on receiving the transpor- 
tation company's receipt for empty cans, then in case of loss of 
cans the transportation company, even though it is not held 
responsible, will make a greater effort toward locating them. 

A large creamery with a separate receiving department may 
keep a special record of the riumber and size of cans received 
from each patron; the empty cans when returned are checked 
against such a record (Form VII). 



FORM VII 
Receiving Clerk's Can Record 



Ndffte 


Address 


No. of cans 




lo-gal. size 


S-gal. size 


5-gal. size 


J. Johnson 


Boro 


I 




I 


C. Jones 


Simpson 




2 




Route No. I . . . 


Albany 


8 




I 



PUliCHASE OF MILK AND CREAM 



"3 



The bills received from the transportation company are also 
checked against the receiving clerk's can record. 

The cream is next turned over to the cream department where 
it is weighed and tested and a record thereof kept on the daily- 
cream receiving blank (Form VIII). The samples should be 
tested in duplicate and retested if they do not check with pre- 
vious tests of cream delivered by the particular patron. 

The individual shippers usually furnish their own cans. 
Some creameries furnish cans for their new patrons for trial 
shipments, but demand that the producers later furnish their own 
cans. A ledger entry is made of cans thus furnished the patrons 
and if cans are kept longer than the time for which they were 
promised as a loan, then the value of the cans is deducted from 
the cream check of the patrons. This method of collecting for 
cans should be fully understood by the patron at the time 
when the can is turned over to him. Other creameries are 
willing to loan cans to all of their patrons. This latter system, 
however, encourages negligence on the part of the patrons in 
taking care of the cans, and the loss sustained on account of lost 
cans is usually hea\y. 

FORM vm 



SurssET Ceeameev 

Su^fSET. La. 



Daily Cream Receiving Record 



Az/.? 



~T^ 



'?^:r-.^j^ 



v-^-Oi. 









C13 



£9 



To-c 



^'^ 



■""^^ 



C-9 



"^^n^o 



3es 






F?EKA.=?r\5 



114 MANAGEMENT OF DAIRY PLANTS 

The Cooperative System of Delivery. — By this system 
patrons conveniently located join in changing off in hauling 
their products to the creamery. Such an association of patrons 
is usually known as a club. This method of delivery has these 
advantages over the individual system: First it reduces the 
time required by each individual for hauhng; second, more 
distant producers can deliver their products at a profit, and 
third, the work of receiving at the creamery is somewhat re- 
duced. This system is practically the same as the individual 
system and the same methods adopted for the individual sys- 
tem apply to the cooperative system. 

Route System of Delivery. — The route system is the method 
of delivery by which the milk or cream is collected by a person 
(the driver) who receives (from the patrons) a definite compen- 
sation for service rendered. The driver may be hired by the 
patrons or by the creamery to which he delivers, but if he re- 
ceives his salary from the creamery the total amount paid for 
his services should be deducted from the patrons' checks, in 
proportion either to the amount of butter fat or to the pounds 
of milk or cream delivered by each patron. 

The following advantages may be mentioned for this sys- 
tem: First, it increases the territory of the creamery; routes 
are successfully operated to a distance of from twelve to fif- 
teen miles from the creamery. In some districts this system 
has developed to the extent that the original routes receive 
cream from sub-routes which start where the original routes 
discontinue and cover territory still farther distant from the 
creamery; second, distant patrons are always pleased to be 
relieved of hauling, especially during the summer season; third, 
an able driver should be in a position to greatly increase the 
patronage of the creamery; fourth, the cream collected on the 
routes is usually of higher quality than that brought by individ- 
uals, as it is as a rule collected at shorter and more uniform 
intervals. 

Disadvantages may be mentioned as follows: First, cost 
of hauling; if the cost of hauling exceeds three cents per pound 
of butter fat in cream and five cents per pound of butter fat 



PURCHASE OF MILK AND CREAM II5 

in milk after the route has been well estabhshed, then the future 
success of such a route may be considered rather questionable; 
second, scarcity of capable haulers; third, increased length of 
time during which the cream is in transit to the creamery; this 
objection is practically eliminated if the cream receives proper 
care by the hauler. 

1. Residence of the Driver. — The most convenient residence 
for the driver collecting milk is at the end of the route of great- 
est distance from the creamery. All the milk will be collected 
on the way to the creamery and the skim milk will be delivered 
to the patrons when making the return trip. 

The driver collecting cream should be located close to the 
creamery so that, when starting on his route in the morning, 
he can collect the cream produced along one road and when 
returning to the creamery collect the cream along another road. 
A driver's travel from the creamery to his home, after complet- 
ing his day's work, represents nonproductive labor. 

2. Collecting in Individual or in Common Cream Gathering 
Cans. — The cream may be collected in individual cans; the 
weighing and sampling of the cream is then usually done at the 
creamery. Or the driver may collect in common cream gather- 
ing cans and weigh and sample the cream at the farm. The 
cream from several patrons is thus mixed in the same 
can. 

The advantages of using individual cans are: First, elimina- 
tion of losses due to inaccurate weighing and sampling; it is 
usually difficult for one of less experience to secure an accu- 
rate sample for testing, especially during the winter season 
when some of the cream may be frozen; second, less cream is 
lost to the patrons as the cream can all be removed from the 
cream can at the creamery by applying warm water on the out- 
side of the can. Heavy cream adhering to the can is removed 
with difficulty on the farm where there is usually a scarcity of 
warm water; third, it gives the butter maker better control of 
the quality. He can grade the cream as he deems best. He 
knows the defect of each individual's cream and can talk intel- 
ligently to the producer about how to improve it; fourth, it 



Il6 MANAGEMENT OF DAIRY PLANTS 

makes it possible to make use of a less competent driver when 
an able man cannot be secured. 

Advantages in using the common cream gathering cans and 
weighing and sampling the cream when receiving it at the farm 
are: 

First, patrons who prefer to do so may witness the weighing 
and sampling of their cream. Such patrons may, however, be 
satisfied by using the individual cans if the driver brings a 
pair of scales and weighs the cream when he receives it. The 
can may be marked with its tare weight so the net amount of 
cream is readily determined. It may also be advisable at places 
for the hauler to take the sample even though the individual 
cans are used. 

Second, the same amount of cream makes less of a load and 
occupies less space on the wagon. 

Third, churning of the cream on the road is prevented by 
filling the cans or by using cans equipped with float. This 
advantage, as in the case of the second mentioned, is in part 
secured for the individual can system by using a special indi- 
vidual can which is equipped with float and so constructed that 
two or more can be placed on top of each other in the wagon. 

Fourth, when less cans are needed on the wagon less labor 
will be required for keeping the cream cold while in transit. 
This is true especially when the jacketed cream can is used. 

3. Care of Cream while on the Route. — If the cream is mixed 
by the driver, care should be taken to mix cream of same quality 
together, and to use separate cans for each grade. If the cream 
is bought on a quality basis, then some system should be 
adopted for grading which can be operated intelligently by the 
hauler, for the cream should be graded when it is received by 
the driver. 

If the regular steel milk cans are used for cream, in the sum- 
mer they should be wrapped with burlap. This should be kept 
wet. The bottom of the wagon should be covered with a wet 
blanket, canvas, or several thicknesses of burlap. This should 
be wet frequently by throwing a few pails of cold water over it. 
Each pound of water that is converted into steam takes up heat. 



PURCHASE OF MILK AND CREAM II7 

It has been demonstrated that not merely will cream cared for in 
this manner remain without increase in temperature, but will 
often reach the creamery cooler than when received from the 
patrons. 

A special can with a deep cover in which ice may be placed 
has been used to advantage by several creameries. Others use a 
small steel two-quart can with a tight-fitting cover. This 
is filled with crushed ice and put into the cream can. The ice 
is carried by the driver in an insulated wooden box. 

4. Checking Butter Fat Losses of the Cream Route. — If in- 
dividual cans are used, the cream from the routes will be han- 
dled as by the individual system and the driver is not held 
responsible for butter fat losses sustained from such patrons. 
If the cream is weighed and sampled by the hauler, then he 
should furnish a record of the amount of cream credited to each 
patron (Form IX). The total amount of cream, according to 
the hauler's report, should equal the weight of the entire load as 
weighed at the creamery. The individual samples, as well as 
the composite sample of cream from the entire route, are tested 
at the creamery, and the total amount of fat paid for according 
to the driver's report should be equal to the amount of fat re- 
ceived at the creamery, figured from the creamery weight and 
composite sample. 



ii8 



MANAGEMENT OF DAIRY PLANTS 



DRIVER'S R&PORT 
Route No. 



FORM IX 

ROYAL CREAMERY CO. 

Royal, France 



Date. 



NAME OF PATRON 



Battle No 



Lbs of GtV3Tn 



Test 



Lbs. of Rit 



j0p Q^-mxtA/ 



/2/0 



a2 5 



2a. 



/0.2 



X a 



'AxrufTu 



6/'> 



/O.J 



82.D 



2.a 



/. /3yy7itmJlL€y 



28 



50.0 



26.0 



/30 



cC /^C/TicA/ 



/O// 



5.0 



2^.5 



/.2 



O. S^CLcUy 



//c 



20.5 



350 



7. 



£l2^ 



'az^uA^ 



314 



40.0 



36.0 



/5.2 



Q7j£jA^072y 



e/2 



72.5 



30.5 



22/ 



(J J^^TTutAy 



//46 



3/0 



32.0 



9.9 



^.7/c 



a^72£Ay 



/O// 



22.5 



/S.5 



42 



(P iJicLAJl'LA/ 



36/ 



/2.5 



33.0 



4.1 



0(SJ^ 



■J65 



/O.O 



3/.0 



3/ 



orne.^ 



V'UVly)UX:0 



rra 



'yunu72. 



AXT 



/{pyc 



S^Jia. 



77l£AAJ' 



^MA 



'o^-zeA^' 



/42 



^atcLi^ 



/6.0 
3350 



u 
^/o 



7.4 

/oo.o 



PURCHASE OF MILK AND CREAM 

FORM X 

Route-Checking Record 

Route No. 3 



119 



Diilr 


Amount Received 


Amt. paid for 


Overage 


Shortage 




Cream 


Test 


Fat 


Cream 


Fat 


Cream 


Fat 


Cream 


Fat 


M.'inh 




















[ 


303 


30.5 


92.4 


303 


1 ■ .S 




■ 9 






3 


340 


29.0 


98.6 


341 


lOT .0 






I 


2.4 


5 


331 


2g.o 


96 . 


33. S 


100. 






4 


4.0 



Tot.-il 



The route-checking record (Form X) is kept up daily for the 
purpose of checking the accuracy of the work done by the 
drivers. It is unnecessary to have special printed blanks for 
this purpose, a cheap book being satisfactory. A page should 
be allowed for each route. This book should be left at a place 
where the drivers have access to it, as they are usually as much 
interested in having their work check as is the creamery 
operator. 

On examining the .sample route-checking record (Form X), 
it will be noted that there were some errors either in taking the 
samples or in testing. The person doing the testing should 
always be certain that his own work is done correctly. To do 
this he must make duplicate tests. If it is evident that the 
driver is making mistakes in taking the samples, then he should 
be so informed, and properly instructed so that future errors 
will be avoided. If errors in weights of cream are noticed, it is 
most likely due to inaccuracy of the scales, or failure to balance 
the scales for each weighing. 

It is advisable to have the names of patrons written on the 
driver's report at the office. The names should be written in 
the order in which the hauler calls on the patrons. By this 
method the names are written more plainly and fewer mistakes 



120 M.\NAGEMENT OF DAIRY PLANTS 

will occur. Furthermore this plan brings immediate informa- 
tion to the office in reference to discontinued patrons. 

Station System. — A cream station is a plant rented or 
owned and operated by a creamery for the purpose of buying 
and usualy pasteurizing cream collected from the surround- 
ing territor};, and then sending it to the creamer\^ for manu- 
facture. The station itself may receive cream from individual 
patrons and from routes, and so far as the cream purchasing is 
concerned this is managed in the same manner as in a small 
creamery. A building 15 by 30 feet in size usually answers the 
purpose, and the main equipment needed is a 4 to 10 horse- 
power boiler, a 2 horse-power engine, a water pump, a steam 
tester, and a cream ripener which may be used both as a cream 
pasteurizer and as a cooler. For a skimming station one or 
more separators should be added and the size of the boiler and 
engine increased in proportion. 

The greatest advantages of the station are tliat the cream- 
ery, through its agent (the station operator), can keep in close 
touch with its more distant customers and that the quality of 
the cream is improved by pasteurizing and properly cooling it 
before it is shipped to the central plant. The main objection 
to the station system is the cost of operation and the invest- 
ment involved. 

A station should receive cream from not less than 300 to 400 
cows in order to keep the expense per pound of butter fat within 
a reasonable limit. The expense may be somewhat reduced if 
it is possible for the station operator to haul the cream from one 
of the routes three days of the week and receive cream at the 
station on the other three days. Some of the stations manufac- 
ture butter enough to take care of local demand. 

I. Station Reports. — Form XI is a report blank which may 
be used by the stations in reporting to the central plant. It will 
be noted that part of this blank is tilled out at the central plant. 
The statement is intended to give a complete record of the daily 
cream receipts of the station. Losses sustained, due to improper 
weighing or testing, and the disposition of the product reported 
by this record are checked at the central plant. 



PURCHASE OF MILK AND CREAM 
FORM XI 



121 





















rgr\on 


















R(Xrrc 


RrccivEO 


Cr-CO- 


er 


SrA-ron 


• LOii OO C»"l - 


r^ 




etMApVfl 


COCAM 


BUT^B f*- 


C»CAM 


rc5' 


OJnia r/.T 


J-A-i 




Caiw 






/ 


CZ<} 


167 


Z 


azo 


iC 


/^ 





1 


Z 








z 


3Zt.5 


SO. 


a 


3Z^ 


?.5: 


6Z 


6 






2 


z 




« 


^IZ 


113. 


3 


azo 


2d 


/I7 


6> 






<z 


3 








J2«^ 


ZI6 


67 


^ 


ZI6 


30: 


(ei' 


^ 


/ 


1 


































'jr^J> /A 


Vj. 


^>tf^p« 


'- 


"Ryr/u. 


iS755 


<?<%? 


5 


/£0Z 




a£Z 7 


2 


2, 


6 


5 






1 




rtfb irom \_nr> Shipment 


cz 


30 


• IZ 


C 




SOMMARV 
r.r«*r, ^9 

Cmrrr\ Z6 5 




Totol 


i(iZ<i 




ac>5 


3.. 






5Z9 


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ill 


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test_ 


3/7S «f 


Held far N«rt 5Hpm.5nl 







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ii".i» .?//(? Rr 


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2. Shipping the Cream to the Central Plant. — Each can is 
properly addressed and billed as explained on page no, but in 
addition one of the cans bears a tag of conspicuous color; on one 
side may be written the address of the firm for whom the ship- 
ment is intended, on the other side it carries the following 
information : 

No. cans shipped 

Lbs. cream shipped 

Test of cream 

Lbs. butter fat 

Remarks 

Signed 

Station 

The receiving department of the main plant is by this re- 
port enabled to learn whether cream has been lost while in 
transit or if there is a variation from weights or tests reported. 
If variation is found it should be noted if there are any indica- 
tions of loss while in transit, such as one of the cans being only 
part full. If cream has been lost it is readily indicated by the 
old cream line on the inside of the can and the seal is likely to be 



122 MANAGEMENT OF DAIRY PLANTS 

broken or perhaps replaced with another seal not bearing the 
proper stamp. If it is evident that the cans have been tampered 
with, it is advisable to call the inspector of the transportation 
company and request that he inspect the shipment before the 
cream is removed from the cans. When it has been inspected, 
it is handled in the usual manner and a claim is made out against 
the transportation company for loss sustained. In presenting 
this claim to the transportation company it should be explained 
in detail how and when the shipment was received, where it 
originated, by whom shipped, etc. This letter should be 
accompanied with original bill of lading or expense bill. 

Local Agent System. — Under this system the central plant 
employs a person (the cream buyer) whose duty it is to buy for, 
and ship the cream to, the central plant. 

The advantage of this system is that the creamery will ob- 
tain more cream from a distant territory l:)y having a local man 
as buyer. The main disadvantage is the cost of collecting, 
such a buyer usually receiving from one to three cents per 
pound of butter fat for collecting. There may also be a de- 
crease in quality of creami from such agents, due mainly to in- 
capability and disinterest on the part of the buyer; he is paid for 
collecting the cream often regardless of quality and frequently 
he is even unable to decide as to quality. Decrease in quality 
may also be due partly to the condition of the place where the 
cream is kept after it has been collected, for it is not always 
arranged with facility for cooling. 

Cooperative Cream Selling System. — A cooperative cream 
selling organization is an association of producers formed for 
the purpose of collecting and selling the cream produced by 
its members. It eliminates the unnecessary expense of hauling 
by competitive creameries sending teams over the same road. 
It reduces the expense of soliciting by competitive creameries. 
It increases the selling price of the cream by selling to the high- 
est bidder. It promotes greater interest in dairying and as a 
result the quality and quantity of the cream will be increased. 



CHAPTER IX 
PURCHASING EQUIPMENT AND SUPPLIES 

THE BUYER 

The qualified buyer is the one who obtains the ;. ost value 
for his money without defrauding the salesman of money which 
is justly due him. A business transaction has been defined as 
being an exchange of values. Therefore, if a permanent busi- 
ness relationship is established between two firms, the business 
transaction between them must be mutually beneficial. 

The Buyer Should Know the Present Value of the Goods 
He Is to Buy. — The unqualified buyer is ignorant of values. 
He may realize his own ignorance and imagine that the salesman 
is taking advantage thereof. As a result he may make an arbi- 
trary offer which is perhaps even less than the cost of the goods 
to the manufacturer. He is not willing to pay the price at 
which the goods are offered by the salesman, regardless of how 
fair such a price may be. 

The salesman who is anxious to do business studies the char- 
acter of the buyer. It is soon clear to him that he is dealing 
with a man who is either ignorant as a buyer or perhaps a man 
v/ho is unwilling that the manufacturer or dealer should make a 
fair profit. The latter class of men are not considered as desir- 
able to do business with and some firms even refuse to sell them 
goods. If the salesman considers that the buyer belongs to the 
first class mentioned he may be inclined to ask a price high 
enough so he can afford to reduce it as much as he thinks neces- 
sary. The buy^r in this case is placed at a disadvantage, and it 
is quite likely that he will pay more than market value for the 
goods he buys. 

The successful buyer studies the goods he buys. He should 
know the source of raw material from which they are manu- 

123 



124 MANAGEMENT OF DAIRY PLANTS 

factured, the cost of such material, fluctuation in value thereof, 
if any, cost of manufacturing, cost of selling, value of patent 
rights, and the legitimate profit for the manufacturer and 
dealer. 

The general market value of an article is ascertained by writ- 
ing to various firms handling that particular article. Informa- 
tion thus obtained should be filed. For smaller firms a letter 
file will be satisfactory and the letter itself may be filed for refer- 
ence. For larger firms a card file will be more satisfactory. The 
information may be filed alphabetically and for creameries the 
file may be divided into two sections, the first dealing with 
equipment and the second with supplies. For example, if let- 
ters are received in reference to the cost of equipment the in- 
formation may be filed under the general names of such equip- 
ment as churns, vats, engines, testers, etc., and alphabetically 
in reference to firm names. 

The Buyer Should Know the Future Value of the Goods 
He Is to Buy. — A buyer will know when to buy and how much 
to buy if he has a fair conception of the future value of the 
goods. Consider, for example, such an article as coal, which 
fluctuates more or less in value. In order to determine the 
advisability of buying several months' supply at a time the 
buyer should consider the principal factors which may affect 
the future value of the coal. Such are general demand, labor 
strikes, transportation, and local conditions. Under the head 
of transportation should be considered both the ability of the 
transportation company to give prompt service as well as dif- 
ference in rate of transportation between smaller and larger 
quantities. Some factories are so located that they can take 
advantage of water rate at certain seasons of the year, while at 
other times they must ship by rail. Under the head of local 
conditions should be considered price charged by local dealers, 
cost of drayage, amount of money available, interest on money, 
storage facilities, loss of fuel value of coal, etc. 

The Buyer Should Know the Quality and the Need of the 
Goods He Buys. — He should be able to make a wise choice as 
to quality and determine whether the article in question is 



PURCHASING EQUIPMENT AND SUPPLIES 12^ 

absolutely needed. Goods are often bought because they are 
cheap and it is expected they will be needed later on. A few 
mistakes of this nature will be sufficient to reduce the annual 
dividend several per cent. In order that the buyer may know 
what is needed it is well for him to keep a want book in which 
to write down articles needed so that they may be ordered to- 
gether with the next regular order. 

HOW TO BUY 

Contracting for a Year's Supply. — Most creameries buy 
supplies in small lots, placing orders for them with various 
dealers. For that reason the dealers find it necessary to have 
their traveUng solicitors make frequent calls in order to be as- 
sured of their share of the business. The cost of such calls is 
naturally charged up against the cost of selling the goods and 
the buyer has to pay the expenses. Many of such expenses 
could be eliminated if creamery managers would estimate the 
amount of supplies required for the coming year. This is read- 
ily done, especially after a creamery has been operated for a 
year or more, as its requirements will vary from month to month 
much as they did during the previous year. A buyer should be 
able to estimate to a fair degree of accuracy if the business will 
show a general decrease or increase for the year. The inventory 
record of supplies for the previous year will present a fair esti- 
mate of the proportion of the supplies needed for each month of 
the coming year. Therefore, whenever submitting an order to 
dealers for bids they may be requested to submit bids under 
various specified conditions. For example, a buyer might re- 
quest that dealers submit bids on the entire order to be shipped 
in one shipment at a definite stated time, also that they sub- 
mit bids on the same order to be shipped in four separate ship- 
ments, each shipment to consist of a definite stated quantity 
which will naturally vary in accordance with the demand; as a 
third bid he might request dealers to submit bids on monthly 
shipments in amounts as stated by the purchaser. 

In determining the size of shipment to take at each delivery 
a buyer should consider the difference in cost, amount of money 



126 MANAGEMENT OF DAIRY PLANTS 

available, rate of interest, storage facilities, and cost of trans- 
portation. 

In submitting the order to the various dealers for quotations 
it is convenient to have a blank for that purpose. A duplicate 
should be kept in the office for reference. After the quotations 
have been received and compared the successful bidder is noti- 
fied that his quotation has been accepted. The quotations are 
filed in a letter file. For convenience this file may be marked as 
No. I. 

Promptness in Making Remittance for Goods Purchased. 
— This is an important factor in securing the lowest rate from 
the dealer. If the firm buying is in such financial circumstances 
that it can pay cash, that will be most satisfactory to all con- 
cerned, and by that method it will secure the lowest quotation. 
A business firm should have a definite time, say the tenth of 
each month, when to pay all bills, and it is business policy to 
arrange for having all checks for goods purchased, not including 
material purchases which are usually paid oftener, mailed 
promptly on that date. 

Cash Discount. — Some firms allow a special cash discount 
on accounts paid within a time designated on the bill. Such 
bills should always be paid promptly, as the discount is usually 
large enough to be profitable to the buyer. When entering such 
bills in the purchase journal, the labor of bookkeeping is reduced 
by deducting the discount on the bills and entering the actual 
amount paid. 

RECORDS 

Receiving Record. — The person who receives merchandise 
purchased, whether he be a special receiving clerk or the butter 
maker, should make an entry thereof in a book kept for that 
purpose. This book is known as "the receiving book." This 
record should state when goods were received, name of shipper, 
kind of goods, amount, and condition in which goods were re- 
ceived. In larger creameries the manager will often furnish the 
receiving clerk with a memorandum of kind of goods purchased 
and from whom purchased. On this memorandum, however, 



PURCHASING EQUIPMENT AND SUPPLIES 1 27 

he should not include the quantity ordered, as by receiving this 
information the receiving clerk might neglect to check it when 
received. If the goods are short the factory is notified at once. 
If damaged in transportation the railroad inspector is noti- 
fied and a claim is filed for amount of damage. 

Filing of Invoices and Bills. — The invoice for goods ordered 
is usually received before the goods arrive. Upon receipt 
thereof the invoice is checked against the order filed in file 
No. I , and when the goods are received the invoice is checked 
against the receiving book; the extensions are also checked and, 
if found to be correct, the invoice is pinned to the order and 
returned to file No. i. These items should be filed in alpha- 
betical order, according to firm names, and each firm's invoices 
should be filed in order of dates. 

At the close of each month the various firms usually mail 
bills. If not, bills should be called for. Upon receipt of the bill 
it is checked against the invoices in file No. i and if found cor- 
rect it is marked "O. K.," pinned together with the various in- 
voices, and filed alphabetically in a similar file marked ''No. 2." 
It is now ready for payment and a check, together with 
the bill, is mailed to the creditor. A receipted bill is returned 
to the purchaser. This is pinned to the invoices and filed 
for future reference. A similar file may be used, but it 
should be marked, giving the period of time covered by the bills 
it contains. A large creamery may use a separate file for each 
month and this file is then marked with the name of the month 
and the year. A smaller creamery may be able to file in one file 
all its bills for an entire year; the file is then marked with that 
year. 

Supply Room Records. — In the smaller plants the butter 
maker is in full charge of the supply room. It speaks well for a 
butter maker if he keeps his supply room as it should be kept, 
with shelves and cupboards around the walls for the various 
articles, such as parchment papers, butter color, tub tins, etc. 
with tubs, barrels, and boxes piled in systematic order. There 
should be a place for everything and everything in its place. By 
keeping the supply room in order less goods will spoil, less work 



128 MANAGEMENT OF DAIRY PLANTS 

will be required in taking the monthly inventories, and less room 
will be required for holding the supplies. 

1. Receiving Goods from Supply Storage Room. — The larger 
creameries often have a special stock clerk who receives the 
supplies from the receiving department, and places them in the 
supply room. The various departments receive their supplies 
from this stock clerk on written orders signed by the foreman of 
the department. 

Form XII may be considered as a convenient blank for such 
orders. 

FORM XII 

Creamery Order for Supplies 

No. 720. 

Date 

Please deliver to our department the following supplies. 
4,000 butter wrappers. 

Butter Mfg. Dept., 

(Signed) J. Brown. 

These blanks may be put up in pads about 4 inches by 5 
inches in size. They may or may not be written in duplicate. 

2. Monthly Inventory Record of Supplies. — The monthly 
inventory record of supplies on hand is of value: First, for 
determining the amount of supplies used during the month; 
second, as a guide for placing orders for supplies; third,- as a 
check record on waste in supplies, and fourth, as a record in 
case of fire loss. 

Form XIII represents an inventory blank which may be 
made to cover the entire year. This blank is self-explanatory. 
The purchases are entered from the purchase journal. The 
amount used during the month is equal to the amount on hand 
on the morning of the first day of the month, plus purchases 
made during the month, less amount on hand on the morning of 
the first day of the following month. 



PURCHASING EQUIPMENT AND SUPPLIES 



129 



FORM XIII 

Inventory of Supplies 





January 


February 


March 


Article 


On hand 


Purchased 


Used 


On hand 


Pur- 
chased 


Used 


On 

hand 


Pur- 
chased 


Used 






$60.00 
39.00 


S 

30 
600 






S 


^ 


"5 






i 





i 


« 



5 





8 


a 


Coal 


Tons 
20 

150 


$90.00 


25 


$75.00 


25 


$75.00 




— 


: 


: 


— 


— 




— 




Butter tubs. . 


156.00 


500 


130.00 


250 


65.00 






Butter boxes. 










— 




Butter 

wrappers. . 










Butter salt . . 











In order to facilitate the work of taking the inventory a 
record, such as Form XIV, will be of much value. This blank 
is fastened to the shelves on which the supplies are kept. When- 
ever the butter maker removes supplies an entry is made on 
this record. In the case of a stock clerk the total amounts of 
supplies delivered in accordance with his order blanks are 
entered daily or weekly and at the close of the month these 
records contain full information in reference to the amount of 
supplies on hand. By that system one annual inventory count 
of the supplies on hand is usually found to be sufficient. 



I30 



MANAGEMENT OF DAIRY PLANTS 



i^ 



FORM XTV 

Kind or Supplies 



l&^.^^J'yT-' /U/>7r7^Q^Oey7^ ._ 



Date 


DeTPT to VVMICM CMARSED 


Delivered 


Received 


Q-ayrz / 


crrz. 7^^<iiy?'ic/ 




/o,ooo 


4 


(S'x/.ttiy^ Ci^jZ;iO-<2y^'€^7-7-ZZ-^y2J- 


S.OQO 




6 


(f^u.iy-r'r:Ax:zA£^ 




/OO. OOO 


3 


S--cutt&y?-^ c:l&/D<2^^?^m2y?-^ 


6.000 




15 


S^aMl/7^ i^^£/0<7yH^>?-T'2jZ-9^ 


9,000 




2S 


S^oC'66^^?^ C^j2pa/H!>7n2y7^ 


/ 0,000 




JS/- / 


or^ -fiayri^ 




70.000 



CHAPTER X 

COST OF POWER 

Until recently only steam power has been considered practi- 
cal for the creamery. It is now recognized that the gasoline 
engine and the electric motor may also be used to advantage 
in our modern plants. 

STEAM POWER 

Fuel. — The power is produced from fuel. The value of the 
fuel is measured by the heat units which its combustion will 
generate. The combustible portion of the fuel is the part of it 
which burns; other ingredients as ash remain and are without 
fuel value, the ash varying from 2 to 36 per cent in different 
fuels. 

Coal is the most important fuel known. It is used as a fuel 
in most dairy establishments. It has been estimated 1 that on an 
average one pound of coal is equal for steam-making purposes 
to two pounds of dry peat, two and one fourth to two and one 
half pounds of dry wood, and to three and one fourth to three 
and three fourths pounds of wheat or barley straw. Table III 
by the same author gives the chemical composition of several 
typical kinds of solid fuels. 

^ Steam, its Generation and Use, 



131 



132 



MANAGEMENT OF DAIRY PLANTS 

TABLE III 

Composition of Fuels 





Mois- 




Hydro- 




Nitro- 


Sul- 






ture 


Carbon 


gen 


Oxygen 


gen 


phur 


Ash 


Wood, per- 
















fectly dry . . 


o 


50 


6.0 


415 


1 .0 




1-5 


Wood, ordi- 
















nary 


20. o 


40 


4.8 


33-2 


0.8 




1 . 2 


Peat 


30.0 
12.0 


40.6 


4. 2 


21 .7 




1 


35 
30 


Charcoal 


84 


r 

1 .0 


/ 






. 


Straw 


16.0 


36 


5-0 


38.0 






SO 


Coal, an- 
















thracite. . . . 


1 .0 


86 


I.O 


1 .0 


05 


0.5 


lO.O 


Coal, semi- 
















bituminous 


I 


84 


4.2 


3-4 


0.8 


0.6 


6.0 


Coal, bitu- 
















minous. 
















Pittsburgh . 


1.4 


75 


50 


8.0 


1 .0 


1.6 


8.0 


Coal, bitu- 
















minous, 
















Hocking 
















Valley, 0... 


7-5 


67 


4.8 


lO.O 


1 . 2 


1-5 


8.0 


Coal, bitu- 
















minous. 
















Illinois 


II. 


56 


50 


II. 


1.0 


30 


13.0 


Brown coal. 
















Pacific 
















coast 


16.8 


50 


3-8 


136 


0.9 




13-2 


Lignite, 
















Pacific 
















coast 


14.0 


55 


4.0 


15.0 


1 .0 


1 .0 


50 



Heating Value of Fuel. — The amount of heat generated by 
combustion of carbon, hydrogen and sulphur is as follows: 
Carbon, 14,500 heat units per pound; hydrogen, 62,000 heat 
units per pound; sulphur, 4,000 heat units per pound. 

Carbon and hydrogen are the only elements considered to 



COST OF POWER I33 

possess practical fuel value. The heating power of fuels con- 
taining carbon and hydrogen is approximately expressed by the 
formula: 

h= 145 (C+4.28H)i 

A manufacturer purchasing a quantity of fuel will do well 
in having a sample thereof subjected to chemical analysis, and 
the heat value is thus readily determined. Take as an illustra- 
tion the analysis of Hocking Valley Coal, Table III, and the 
heat value is as follows: 

h = 145 (67 + 4.28 X 4.8) = 12,694 B. T. U. per pound. 

Heat Required for Producing Steam. — Water at 212° F. 
takes up 966 B. T. U. when converted into steam of the same 
temperature. Therefore if one pound of coal produces 12,694 
heat units then a pound of such coal will produce 12,694/966 or 
13.14 pounds of steam of 212° F. from water of the same tem- 
perature. The amount of heat thus required to produce a 
pound of steam is known as the latent heat of vaporization. 

In practice more heat is required for producing a pound of 
steam, as the water that is converted into steam is usually at 
a temperature much below 212° F. Possibly 60° F. will come 
nearer to the temperature of the boiler feed water as used in 
most creameries. Furthermore the steam in the boiler is heated 
to a temperature exceeding that of 212° F. Consider that a 
creamery is using boiler feed water at 60° F. and carrying a 
steam-gauge pressure of 80 pounds, it will then require 1,153 ^^^^ 
units for each pound of steam produced, or one pound of the 

above-mentioned coal will produce — or 1 1 pounds steam. 

i»i53 
Losses of Heat When Producing Steam. — If there were no 

losses to consider it would be comparatively easy to determine 
the amount of fuel of a known composition required for produc- 
ing a definite amount of steam. It will be impossible even for 
the most careful engineer to reach the theoretical efficiency. It 
should be possible, however, for many engineers to materially 

' Siebel's Comf)end. of Mechanical Refrigeration and Engineering, 191 1, p. 96. 



134 MANAGEMENT OF DAIRY PLANTS 

reduce many fuel losses in the boiler room and often throughout 
the entire factory. 

Creamery boiler losses in a small creamery are estimated by 
Bowen ^ as averaging about 50 per cent of the theoretical effi- 
ciency. For a steam plant operated under most economical 
conditions the following estimate is furnished: 

Loss due to iinconsiimed particles of coal falling through grate 2% 

Loss due to incomplete combustion 2% 

Loss due to heat being carried away in stack gases 23% 

Radiation and other losses 8% 

Total boiler losses 35% 

Such losses will further reduce the amount of steam pro- 
duced from a pound of coal, so instead of having 11 pounds of 
steam produced this figure is reduced to 

II X — or 7.1c; pounds of steam, which is being finally pro- 
100 

duced from a pound of coal when considering the second esti- 
mate. The theoretical efficiency obtained from the coal in this 
case is 65 per cent. Under the small creamery conditions where 
we figure on a 50 per cent efficiency the amount of steam pro- 
duced from a pound of coal is 11 X ^ — = 5-5 pounds. 

100 

Losses of Heat When Converting It Into Mechanical 
Work. — Heat is converted into power through the steam en- 
gine. The amount of power produced is spoken of in terms of 
horse power. One horse power corresponds to 33,000 foot 
pounds 2 per minute; 778 foot pounds correspond to one British 
thermal unit. The amount of heat therefore required to pro- 
duce one horse-powder hour is equal to 

2M5^° = ,,545 B. T. U. 
It is estimated that a good engine will require from 15 to 30 

1 Circular 209, B. A. I., 1913. 

^ A foot pound is the power required to raise one pound one foot per minute. 



COST OF POWER I35 

pounds of steam per horse-power hour. It is to be assumed that 

the average creamery engine will be operated at a greater loss of 

steam and it may be fair to estimate that it will require 40 

pounds of steam per horse-power hour. The heat required to 

produce that amount of steam at 80 pounds gauge pressure 

from water of 60° F. is equal to 1,153 X 40 = 46,120 B. T. U. 

The per cent of the heat converted into mechanical work is 

equal to 

2,1:41; X 100 

'^^^ = 5.5 per cent. 

46,120 

Methods by Which Heat Losses Are Reduced. — The ex- 
haust steam from the engine contains much heat. By saving at 
least a part thereof, it will result in a reduction of amount of 
fuel required. The exhaust steam may be used for heating the 
boiler feed water and wash water, for pasteurization, for heating 
the building, etc. The losses are furthermore reduced by proper 
firing, by keeping the boiler clean, and by keeping boiler and 
steam pipes properly insulated. 

I. Value of Exhaust Steam for Heating the Feed Water. — It 
has been stated that it requires 1,153 B. T. U. of heat for pro- 
ducing a pound of steam, 80 pounds of gauge pressure, from 
water at 60° F. It should be possible to heat the water by 
exhaust steam to 200° F. before the water enters the boiler. 
Water of 200° F. when converted into steam of 80 pounds 
pressure will require only 1,153 ~ 140 — i-oi3 B. T. U. The 
saving of heat in this instance is 

140 X 100 

= 12.14 per cent. 

I-I53 

Table IV ^ gives the percentage of saving in fuel by pre- 
heating the boiler feed water from various initial temperatures 
to different final temperatures. 

Table V ^ gives the annual cash saving of fuel on a 40 
horse-power boiler by heating the feed water from various 
initial temperatures to a final temperature of 200° F. 

^ Circular 209, B. A. I., 1913. 



136 



MANAGEMENT OF DAIRY PLANTS 





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COST OF POWER 



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138 MANAGEMENT OF DAIRY PLANTS 

Heating of feed water may be done by two methods — either 
by exhaust steam or by chimney gasses. The heater used for 
the latter is known as ''Economizer." It is the former method 
which will be most practical for the average creamery. There 
are two objects for heating the feed water: First, there is a sav- 
ing in heat when heating the feed water by exhaust steam, and 
second, the water is heated to such a temperature so that it 
will not injure the boiler as will water of a low temperature. 

When using water heaters, the best oil traps obtainable 
should be used, as the oil, if entering the boiler, will mix with 
the solids of the water and finally adhere to the sides of the 
boiler, which will naturally lessen the efficiency of the boiler. 
It is to be preferred that the steam pass through the heater 
through a system of coils, thus eliminating the steam from the 
water in the tank. Fig. 23 1 illustrates a plant with water 
heating apparatus. 

2. Firing. — The method employed in firing the coal may 
involve big losses. The ability of being able to obtain the 
greatest amount of heat from the fuel burned lies in the ability 
of the fireman to supply the right amount of air to the fuel under 
the right conditions. Only such an amount of oxygen should be 
supplied as is necessary to combine with the combustible por- 
tions of the coal. The coal should be added in small quantities 
at a time; it should be spread evenly over the grate. The fire 
should have a thickness of from three inches to six inches; it 
should be clean and should leave no burned-out places or holes. 

Proper installation of the boiler is of importance in order to 
obtain the highest efiiciency. It is estimated that it will require 
from one third to one half square foot of grate surface for each 
horse power of a horizontal tubular boiler. Complete plans and 
specifications for installation of the boiler and for building the 
chimney are furnished by the manufacturer of the boiler and the 
installation should be made and retained in accordance there- 
with. 

3. Keeping Boiler Clean. — The efiiciency of the boiler is 
greatly reduced if the exterior of the tubes is covered with soot 

* Circular 209, B. A. I., 1913. 



I40 MANAGEMENT OF DAIRY PLANTS 

or the interior of the boiler with scale. The exterior of the tubes 
is readily cleaned and should be done daily. The formation of 
scale on the inside of the boiler is more difficult to prevent. The 
most common impurities in water causing formation of scales 
are sulphates and chlorides of lime and magnesia and bicarbon- 
ate of magnesia and lime; also iron silica and other ingredients 
are found. It is recommended to use caustic soda in the propor- 
tion of one fourth pound per horse power; the boiler is then 
steamed for a day before cleaning. The scales become soft 
and are readily removed. Soda ash or carbonate of soda will 
decompose sulphates and chlorides of lime and magnesia. 

4. Insulation of Boiler and Steam Pipes, — Losses of steam 
from boiler, pipes, and engine due to radiation and leakage are 
estimated variously by writers. Such losses may be estimated 
for the average creamery at 10 per cent of the steam produced. 
This loss may be reduced by having boiler and steam pipes 
properly insulated and by preventing leakage from pipes and 
valves. 

Cost of Power When Operating a Steam Engine. — Con- 
sider that I pound of coal produces 5.5 pounds of steam and 
that the cost of such coal is $5.50 per ton of 2,000 pounds. If 40 
pounds of steam are used for a horse power per hour then the 

amount of coal required is — or 7.27 pounds. The cost of a 
horse power per hour is equivalent to. 

7.27 X 550 



or 2 cents 



2,000 



GASOLINE FOR POWER 

The gasoline engines have during recent years been installed 
in several creameries. The principal advantages claimed for 
them are: 

1. Economical in cost of fuel and attendance. 

2. Automatic in operation. 



COST OF POWER I4I 

3. For intermittent service — no expense when not in oper- 
ation. 

4. No water is used except for the cooHng tank, and this 
water may be used over and over again. 

5. It is safe and easy to handle, and no danger from fire. 
As disadvantages might be considered: 

1. Subject to great wear and tear. 

2. The original cost of a gasoline engine is greater than that 
of a steam engine. 

3. The strong odor from the exhaust. However, this may be 
fairly well conducted from the building; nevertheless it is most 
satisfactory that the gasoline engine is placed in a separate 
room which can be thoroughly ventilated. 

Cost of Operation. — A gasoline engine will consume about 
one tenth of a gallon of gasoline per horse power per hour. If 
the cost of gasoline is 24 cents per gallon then the cost per 
horse-power hour is 2.4 cents. 

KEROSENE FOR POWER 

The kerosene engine may be operated either with kerosene 
or gasoline. As advantages and disadvantages for this machine 
the same might be mentioned as enumerated under the head of 
gasoline engines. The odors from the kerosene engine are 
somewhat stronger, the original cost about 25 per cent higher, 
but the cost of operation with kerosene is much less. 

Cost of Operation. — About one eighth of a gallon of kero- 
sene is required for producing one horse-power hour. If the 
cost of kerosene is 1 2 cents per gallon then the cost per horse- 
power is 1.5 cent. 

ELECTRIC POWER 

Electric power is measured in kilowatts (K. W.). A watt is 
1/746 of a horse power and a kilowatt is 1,000 watts or i 1/3 
horse power. A small amount of power is lost due to friction 
in the bearings and to heating of wires, therefore a motor re- 
ceiving a kilowatt power will transmit slightly less than that 
amount. 



142 MANAGEMENT OF DAIRY PLANTS 

Cost of Operation. — If the cost per kilowatt hour is 5 cents, 
then the cost per horse power is 3 3/4 cents. 

Power is often saved when using electric power by installing 
smaller units, that is, using separate motors for the various 
machines or departments and motors of the proper size. This 
system prevents the use of a 15 to 25 horse-power engine for 
yielding one or two horse power which is usually sufficient for 
stirring the cream or for pumping water. The system of indi- 
vidual motors furthermore reduces the amount of shafting and 
as a result the amount of loss due to friction. 



CHAPTER XI 

PASTEURIZATION 

Pasteurization should be considered as one of the necessary 
expenses in the modern factory of dairy products, for as long as 
the inspection of individual dairies is impossible it will not be 
safe to convert raw products obtained from such dairies into 
finished products to be offered for sale unless they have been 
subjected to pasteurization. Even though the dairy farm from 
which the cream is delivered is under inspection, it is at times 
possible that germs causing disease may also there gain entrance 
into the milk unbeknown to the producer. It is therefore 
generally recognized that if an absolutely safe product is pro- 
duced it should be made from material which has been pasteur- 
ized to a temperature of not less than 140° F. for twenty minutes 
or longer or to a temperature of not less than 180° F. when ex- 
posed to flash heat. Pasteurization also improves the immedi- 
ate quality as well as the keeping quality of the butter and 
causes a more uniform product to be produced. 

A. COST OF PASTEURIZATION 

The expenses incurred by pasteurization may conveniently 
be divided into three groups: i, cost of steam required for 
heating; 2, cost of cooling water; 3, cost of labor and equipment. 

I. Cost of Steam Required for Heating. — Theoretically the 
amount of heat obtained from a pound of steam at a definite 
gauge pressure is a known quantity, but in practice it is not 
possible to obtain a hundred per cent of the theoretical effi- 
ciency. Losses sustained in transferring the heat to milk or 
cream to be pasteurized are primarily due to radiation of heat 
from the steam pipes and pasteurizer. It is therefore economy 
to have the steam pipes leading from boiler to pasteurizer as 
well as the pasteurizer itself properly insulated so as to reduce 
such radiation to a minimum. 

143 



144 MANAGEMENT OF DAIRY PLANTS 

It has been the experience of the writer that under ordinary 
creamery conditions when a steam-gauge pressure of from 40 
to 80 pounds is maintained it is reasonably safe to figure that a 
pound of steam will yield about 900 B. T. U. of heat. From 
this estimated heat value of steam the amount of steam re- 
quired for pasteurization may be quite accurately determined. 
As the difference in amount of heat required to raise a pound of 
water one degree on different parts of the thermometer scale is 
very slight, when considering the range of temperatures made 
use of in pasteurization, it will be safe in this connection to 
consider a B. T. U. as the amount of heat required to heat one 
pound of water any one degree on the Fahrenheit thermometer 
scale. 

Example: How much steam is required to heat 10,000 

pounds of milk from 60° F. to 185° F.? 

10,000 X .94 ^ X (185 — 60) ^ , .. 

Answer: = 1,305.6 pounds 01 

900 

steam. 

1. Method by Which to Determine the Heating Value oj Steam. 
— More accurate determination of steam required for heating 
may be obtained by determining the heating value of the 
steam. This determination may be made as follows: Admit 
live steam into a known amount of water held in an insulated 
container; weigh the water after it has been heated to the de- 
sired temperature — the increase in weight is due to amount of 
steam condensed. 

Example: 80 pounds of water are heated from 60° F. to 180° 
F. The water has increased in weight 10 pounds. How much 
heat has been obtained from a pound of steam? 

Answer: Let y stand for amount of latent heat obtained 
from each pound of condensed steam used. Then, 

10 [y+ (212 - 180)] = 80 (180— 60); y = 928 B. T. U. 

The total amount of heat obtained from each pound of steam 
used is equal to 928 + 32 = 960 B. T. U. 

2. Weighing the Condensed Steam. — The amount of steam 
required for doing a definite amount of work is determined in 

^ Specific heat of milk. 



PASTEURIZATION 



145 



the most practical manner by collecting the condensed steam 
and weighing it. This is readily collected from such types of 
pasteurizers as the continuous machines. It becomes more 
difficult when a cream ripener is used as a pasteurizer. How- 
ever, even then it can be determined with a reasonable degree of 
accuracy. The condensed steam is secured through the cir- 
culating water overflow pipe. The circulating tank for the vat 
is first filled with water until it overflows. The agitator should 
be in motion for some time before pasteurization begins so the 
coil becomes properly filled. The amount of circulating water 
required may be determined once for all by weighing it mto the 
tank. After the circulating water has become constant the 
steam may be admitted; however, the steam line should be 
equipped with a drain valve and the condensed water already 
in the pipe should be drained out and not be admitted into the 
circulating water. The amount of steam required for pasteur- 
ization is equal to the overflow minus the amount of the over- 
flow due to expansion of the circulating water. 

TABLE VI 
Densities and Specific Volumes of Water 1 



Temp. 



o°C. 

5 
10 

15 
20 

25 
30 

35 
40 

45 
50 



Grams per 
cubic centi- 
meter 



0.999874 
0.999992 
0.999736 

0.999143 
0.998252 
0.997098 

0.995705 
o . 994098 

0.99233 
0.99035 
0.98813 



Cubic centi- 
meters per 
gram 



I .000127 
I . 000008 
I .000265 
I .000857 
I .001751 
I .002911 
I. 0043 14 
I . 005936 
1.00773 
I .00974 
I .01201 



Temp. 



55 
60 

65 
70 

75 
80 

85 
90 

95 
100 



Gram^s per 
cubic centi- 
meter 



0.98579 

0.98331 
0.98067 

0.97790 
0.97495 
0.97191 
0.96876 
0.96550 
0.96212 
0.95863 



Cubic centi- 
meters per 
gram 



I .01442 
I .01697 
I .01871 
I .02260 
I .02569 
I .02890 
1.03224 
I 03574 
I • 03938 
I 04315 



1 This table by Thiessen, Schell, and Marek is taken 
by Wm. S. Franklin and Barry MacNutt. 



from "Mechanics and Heat," 



146 MANAGEMENT OF DAIRY PLANTS 

Example: State amount of steam used for pasteurizing a 
definite amount of cream in a ripener when the circulating 
water weighs 428 pounds at 50° F. (10° C). Final temperature 
of circulating water being 158° F. (70° C), and amount of over- 
flow being equal to 236 pounds. 

Answer: 

The amount, by weight, of circulating water overflowing by 
being heated from 50° F. to 158° F. is 

428X1.02260—1.00026^ , 

7 ^ = 9-35 pounds. 

1.02260 

Amount of steam used for pasteurization is 

236 — 9.35 = 226.65 pounds. 

3. Difference in Amount of Steam Used for the Continuous or 
Flash Method and the Holding Method of Pasteurization. — By 
the continuous method of pasteurization the milk or cream 
is heated to a higher temperature, about 180° F., and the con- 
densed steam is also discharged at a higher temperature, usually 
at from 200° F. to 210° F. When pasteurizing by the hold- 
ing method the cream is heated to about 145° F. and the 
condensed steam is discharged at a temperature of about 
150° to 160° F. This saving in heat by the latter method is 
somewhat reduced, due to the fact that a certain amount of 
circulating water has to be heated most often from a tempera- 
ture of about 50° F. to about 150° F. The additional amount 
of steam required for heating the circulating water is reduced 
per pound of butter fat as the amount of milk or cream in the 
vat is increased. Therefore when pasteurizing in the vat the 
steam required for pasteurization per pound of butter fat is 
greater when the vat is only half full of cream than when it is 
full. The following examples illustrate fairly well the amount 
of steam required for pasteurization under practical conditions. 

Example: 

I. Determine amount of steam required per pound of butter 
fat when pasteurizing 2,000 pounds of 30 per cent cream from 
60° F. to 185° F. by the continuous method of pasteurization, 



PASTEURIZATION 147 

the condensed steam leaving the pasteurizer at 212° F., 900 
B. T. U. of heat being obtained for each pound of steam used. 

2. Determine amount of steam required per pound of butter 
fat when pasteurizing same cream in a vat, heating it to 145° F., 
the condensed steam leaving at a temperature of 155° F., 500 
pounds of circulating water being used, initial temperature of 
this water being 50° F. and final temperature 160° F. 

3. Determine amount of steam required per pound of butter 
fat when 1,000 pounds of 30 per cent cream are pasteurized 
under the same conditions as specified in 2. 

Answer: 

, . 2000 X 0.84 X 125 , r . 

(i) — = 2^^.T^2> pounds of steam 

900 

' "' ' — 0.389 pound of sf.eam per pound of butter fat. 



2,000 X 0.30 

,. 2,000X0.84X815+ 500 X no ^^ 1 r . 

\2) — - — ^ = 206.69 pounds of steam. 

900 + (212-155) 

= 0.344 pound of steam per pound butter fat. 



2,000 X 0.30 



,. 1,000X0.84X85+500X110 _ J r ^ 

(3) 1 — - — — =132.08 pounds of steam. 

900+ (212 — 155) 

■ " = 0.440 pound of steam per pound of butter fat. 



1,000 X 0.30 

II. Cost of Cooling. — The cost of cooling depends primarily 
on the amount of water required to remove the quantity of 
heat taken up by the milk or cream during the process of pas- 
teurization. A small part of this heat, however, is removed 
by evaporation. This latter factor is of greater importance 
when using an open cooler, such as a tubular, while of less signif- 
icance when cooling in a cream ripener. 

The amount of water required for doing a certain amount of 
cooling decreases in proportion to the number of heat units 
taken up by each pound of water. Therefore the greatest 
cooling efficiency is obtained when the difference is the greatest 
between the temperature of the cooling water as it enters the 



148 MANAGEMENT OF DAIRY PLANTS 

cooler and the temperature of the same water as it leaves the 
cooler. The amount of water required for cooling may differ 
greatly in proportion to the amount of water admitted through 
the cooler. If more water is admitted the cooling will be done 
more rapidly but at a greater expense than when the water 
flows through the cooler more slowly. It is evident that the 
temperature of the cooling water greatly influences the cost as 
well as the rapidity of cooling. 

1. Efficiency of Coolers. — The tubular cooler may be consid- 
ered to be of high efficiency. The author found that the cool- 
ing water when a certain type of tubular cooler was used took 
up 41.59 B. T. U. of heat per pound as against 12. 58 B. T. U. ' 
when cooling with the vat, or it required ^.^^ times as much 
water for cooling with the vat as with the tubular cooler, when 
cooling with water of 54° F. It was also observed that the 
evaporation was slightly greater when using the tubular cooler; 
however, that shall be left out of consideration in the follow- 
ing. 

2. Cost of Cooling'Water. — From experiments referred to, 
the cost of cooling was figured on the basis of the cream con- 
taining 30 per cent of butter fat. About 2,000 pounds of cream 
were pasteurized at a time. The cost of the water was figured at 
ten cents per thousand gallons. The cost per pound of butter 
fat for cooling when using a tubular cooler was found to be 
0.009 c^^t as against 0.021 cent when cooling in the vat. 

3. The Regenerator. — The regenerator may be considered 
as a saving device for the pasteurizing and cooling equipment. 
It is an apparatus over which the cool and hot milk pass simul- 
taneously, the cool milk taking up heat from the hot milk, thus 
saving both in steam and cooling water. Bowen ^ reduced the 
cost of coal about 50 per cent and the cost of refrigeration ap- 
proximately 60 per cent by installing a regenerator. 

in. Cost of Labor and Equipment. — The cost of labor 
varies somewhat with the different type of pasteurizer employed. 
Thus a continuous pasteurizer requires more of a person's 
attention than is required when the cream ripener is used as a 

1 Bui. 85, U. S. Dept. of Agriculture, 1914. 



PASTEURIZATION 149 

pasteurizer. Furthermore the former method involves a greater 
expenditure and therefore more depreciation and interest on 
investment. By the latter method practically no additional 
machinery will be required. 

Considering that a creamery is pasteurizing 2,000 pounds of 
30 per cent cream for 300 days in the year and that for such 
work is used a continuous pasteurizer and cooler of 2,000 pounds 
per hour capacity costing $500, the cost for the year may be 
summarized as follows: 

Labor pasteurizing and cleaning, 400 hours at 30 cents $120 

Depreciation of 20 cents .' 100 

Interest on investment 25 

Total . $245 

Cost per pound of butter fat = J^ ^ = o. 136 cents. 

^ ^ 2, 000 X. 30X300 

If the ripener is used for such work then the labor represents 
about fifteen minutes daily or a total of 75 hours at 30 cents, 
or $22.50. Carrying $50 annually of depreciation and interest, 
then the cost per pound of butter fat is equal to 0.04 cent. 

IV. Total Cost of Pasteurization. — 

I. Cost of Pasteurization by Continuous Method. — It was 
estimated, page 147, that when a 30 per cent cream is pasteur- 
ized by the continuous method it will require 0.389 pound of 
steam per pound of butter fat. Figuring that 5.5 pounds of 
steam are produced from coal costing $5.50 per ton the cost 
of pasteurizing per pound of fat is equal to 

0.380 X 550 . 

^^ ^ ^^^^ = 0.019 cent. 

5.5 X 2,000 

The expenses per pound of butter fat when pasteurizing by 
the continuous method may be summarized as follows: 

Cost of steam o-oiQ cent 

Cost of cooling 0,009 

Cost of labor and equipment 0.136 

Total 0.164 " 



150 MANAGEMENT OF DAIRY PLANTS 

2. Cost of Pasteurization by Vat Method. — Taking for granted 
that the vat used for pasteurization is of proper size, the amount 
of steam required per pound of butter fat when pasteurizing a 
30 per cent cream has been estimated at 0.344 pound. The 
value of this being equal to 

0.344 X 550 

^ ^^^- = 0.017 cent. 

5.5 X 2,000 

The total expenses may be summarized as follows: 

Cost of steam 0.017 cent 

Cost of cooling 0.021 " 

Cost of labor and equipment 0.040 " 

Total 0.078 " 

Bowen ^ estimates the cost of pasteurizing one gallon of milk 
at 0.313 cent and one gallon of cream at 0.634 cent. The 
same investigator found that it requires approximately 17 per 
cent more heat for flash pasteurization than for vat pasteuriza- 
tion. 

It is possible to reduce the expenses of pasteurization slightly 
by utilizing exhaust steam instead of live steam as has been 
considered in the above. 

B. THE ECONOMIC EFFICIENCY OF PASTEURIZING 

MACHINERY 

The economic efficiency of pasteurizing machinery depends 
on the amount of heat that in a definite time will be transmitted 
to milk or cream in the heating chamber from steam or water 
in the surrounding chamber, known as the steam chamber. 
The amount of heat thus transmitted depends on: First, size 
of heating surface; second, thickness of the heating wall; third, 
difference in temperature on the two sides of heating wall, and 
fourth, thermal conductivity of the metal from which the 
heating v/all is constructed. 

1 Bui. 8s, U. S. Dept. of Agriculture, 1914. 



PASTEURIZATION I5I 

I. Conductivity of the Heating Wall. — The amount of heat 

that in a given time will pass through the heating wall of a 

pasteurizer may be expressed by the following formula: 

^ _ KX A(ti-t2) ^ ^ 
Q- - Xi. 

Q represents quantity of heat in B. T. U. conducted. 

K represents the quantity of heat in B. T. U. conducted 
through one square inch of a wall one inch thick per second 
when the difference in temperature on the two sides of the wall 
is 1° F. 

A represents area, in square inches of heating surface. 

ti represents temperature in Fahrenheit degrees in steam 
chamber. 

t2 represents temperature in Fahrenheit degrees in heating 
chamber. 

T represents time in seconds. 

d represents thickness of wall in inches. 

The heating wall of a pasteurizer should be constructed 
from metal which is of high thermal conductivity. Copper 
has been found very satisfactory for that purpose, its thermal 
conductivity being 0.72. Only one metal, silver, is a better 
conductor than copper, its thermal conductivity being 1.096, 
but its use is prohibited on account of its cost. Aluminum is 
next to copper in thermal conductivity, being 0.343, while tin is 
only 0.152. 

Taking for granted that copper will be used for the construc- 
tion of the heating wall of the pasteurizer we know that 0.72 
calorie 1 of heat will be conducted per second through one 
square centimeter of a copper wall one centimeter in thickness 
when the difference in temperature on the two sides of the wall 
is one degree Centigrade. 

The British thermal unit is a measure for heat which is mostly 
used in practical work. As one pound is equal to 453.6 grams 

then one B. T. U. is equal to 453.6 X — = 252 calories. 

180 

I One calorie is the amount of heat required to heat one gram of water one degree 
Centigrade from 4° C. to 5° C. 



152 MANAGEMENT OF DAIRY PLANTS 

The amount of heat which will be conducted per second 
through one square centimeter of copper one centimeter in 
thickness when the difference in temperature on the two sides 
of the copper wall is one degree Fahrenheit is equal to 

0.72 X — = 0.40 calorie. 
180 

The amount of heat in B. T. U. which in one second is 
conducted through one square centimeter one centimeter thick 

is equal to -^ B. T. U. with a difference in temperature of one 

252 

degree Fahrenheit. 

The value of K is equal to ^ 

^X^^^^ = 0.004 B.T.U. 
252 2.54 

Example : 

Determine the amount of milk which should be pasteurized 
per hour when using a pasteurizer of 1,400 square inches heat- 
ing surface; thickness of copper, 0.05 inch. The temperature 
in the steam chamber is 212° F., the average temperature of 
milk in pasteurizer, 152° F. and the milk is heated from 60° F. 
to 180° F. 

Answer: 

0.004X1,400X60 T) T- TT 

Q = X 3,000 = 24,192,000 B. T. U. 

0.05 

Amount of milk to be pasteurized =« 

24,192,000 J 

— —^ = 214,468 pounds. 

120 X .94 

II. Factors Reducing the Efficiency of a Pasteurizer. — 

From the above problem it is evident that the theoretical 
efficiency is not obtained in practical work. About one per 
cent of the theoretical efficiency is as much as may be expected 
when using a pasteurizer of a continuous type. By this it is 
not understood that ninety-nine per cent of the heat is lost, for 

• One inch is figured as being equal to 2.54 c. m. 



PASTEURIZATION 153 

the loss of heat is comparatively slight, but the time required 
for doing the work is greatly increased. It is already under- 
stood that the area of the heating surface, the thermal conduc- 
tivity of the metal, the thickness of the metal, and the tempera- 
tures applied are all factors which influence the efficiency of the 
pasteurizer. Factors greatly affecting the conductivity of the 
pasteurizer wall are the formation of a layer of water on the 
outside of the heating cylinder and the burning on of milk 
solids on the heating surface. 

1 . Layer of Water on Outside of Heating Surface. — The 
layer of water on the outside of the heating surface is formed by 
condensation of steam during the process of pasteurization. As 
the thermal conductivity of water is only .00124 the thermal 
conductivity of copper is 581 times greater than that of water; 
it is therefore economy to have the thickness of the layer of 
water reduced to the minimum. 

The Danish Experiment Station succeeded in increasing the 
efficiency of the continuous pasteurizer materially by soldering 
on the outside of the heating cylinder a series of rings at a 
downward angle of 45°. These rings remove the water quickly, 
the thickness of the layer of water was reduced, and the eco- 
nomic efficiency of the machine increased about 50 per cent 
(Fig. 28.) 1 

2. Burning of Milk Solids on Heating Surface. — Burned-on 
milk is extremely poor in conductivity. It is therefore of much 
importance that all particles of burned-on milk are properly 
removed after each time the machine has been used. This is 
done most readily by filling the machine with water and washing 
powder immediately after pasteurization. By leaving the 
dasher revolving from ten to fifteen minutes it is quite easy to 
remove with a brush all milk particles adhering to the heating 
surface. A knife or any kind of metal should never be used for 
scraping the surface, as such tools will cause rough places and 
when the milk strikes such it will readily burn on. If any 
amount of milk has burned on to the pasteurizer slacked lime 
and sal soda mixed in equal proportions will prove of greater 

» Bui. 43, Danish Experiment Station, 1899. 




Pjg. 24. — Pasteurizer with the Danish Experiment Station 



Improvements. 



PASTEURIZATION 1 55 

efficiency than washing powder, but this should not be used 
unless necessary, as it has a dissolving effect on the tin. The 
following are the most significant causes for milk burning on 
to the heating surface. 

A. Too Thin Metal. — As the copper wall becomes extremely 
thin the heat is conducted so readily through the wall that the 
heating surface becomes too hot. The albumin when striking 
this surface is coagulated and burns on. The increase in the 
thickness of the heating wall will represent a comparatively 
slight decrease in efficiency. This decrease, however, is in- 
significant as compared to that caused by burned-on milk and 
as copper is so efficient as a thermal conductor it is advisable 
to have a copper wall of not less than one-twentieth of an inch 
in thickness. Copper of such thickness will not cause the milk 
to burn on readily and the pasteurizer, furthermore, becomes 
of sufficient durability. 

B. Too High Heat in Steam Chamber. — The heat in the 
steam chamber should not exceed 214° F. The higher the heat 
the greater the danger of burning on. The amount of heat in 
the steam chamber of pasteurizer (Fig. 28) is controlled by 
steam trap A. Through this trap all water condensed in the 
pasteurizer escapes. The higher this water column extends 
above the bottom of the pasteurizer the greater the steam pres- 
sure and temperature in the steam chamber. Steam should 
never be allowed to escape through this trap, as this will repre- 
sent a loss of heat and indicate that the pasteurizer is operated 
above its capacity. 

C. Too High Pasteurizing Temperature. — It is natural 
that the heating surface has to be kept at a much higher degree 
of heat when the high pasteurizing temperatures are employed, 
thus causing more of the milk to burn on. It is often noticeable 
that a ring of burned-on milk is formed around on the upper 
part of the heating surface where the milk has reached its 
highest temperature. 

D. Too Hot Steam Coming in Contact with the Warm 
Milk. — The steam when entering the pasteurizer, if of high 
pressure, is considerably above 214° F. and it is most important 



156 MANAGEMENT OF DAIRY PLANTS 

that such steam enters the pasteurizer at a point close to the 
inlet of the cold milk. 

E. Milk Moving too Slowly Over the Heating Surface. — If 
the milk is moving rapidly over the heating surface there is no 
part of the milk solids that will remain long enough in touch 
with the heating surface to burn on. It is therefore essential 
that the heating surface is smooth; rough places either due 
to imperfect metal or to burned-on particles retard the speed 
of small parts of milk and therefore at such places more or 
less burned-on milk solids will be found. Higher speed of the 
agitator may prevent the milk particles from burning on. 

The Danish Experiment Station ^ (Fig. 28) placed horizontal 
plates on the agitator of a pasteurizer of the continuous type. 
This caused the milk to move over the heating surface at a 
higher rate of speed and as a result less milk solids burned on to 
the heating wall. The horizontal plates on the dasher further- 
more assured uniform heating of all particles of milk pasteurized 
by preventing milk just entering the pasteurizer from splashing, 
whereby some of the cold milk might be discharged with the 
milk properly pasteurized. More particles of the milk will 
come in direct contact with the heating surface of the pasteur- 
izer and the economic efficiency of the machine is thereby in- 
creased. 

III. Purchasing Equipment for Pasteurization. 

1 . Pasteurizer. — When purchasing a pasteurizer the buyer 
should request that the manufacturer furnish a guaranty as to 
its economic efficiency. If a machine is represented to be of 
1 ,000 pounds capacity per hour the temperature of pasteuriza- 
tion should be considered, as it takes about twice as long to 
pasteurize a given amount from 60° F. to 185° F. as is required 
to pasteurize the same amount from 60° F. to 145° F. The 
pasteurizer should be constructed from material of sufficient 
strength and the heating surface should be smooth. 

2. Cooler. — The cooler should be of a size sufficient for cool- 
ing the milk or cream to within 2° to 4° F. of the temperature of 
the water. If a tubular cooler is used the tubes should be con- 

1 Bulletin 43, Danish Experiment Station, 1899. 



PASTEURIZATION I57 

nected with metal strips which insures a more complete spread- 
ing of the milk or cream. 

3. Steam Boiler. — It is important that the boiler is of suffi- 
cient size. The capacity of a boiler is rated by the amount of 
water it is able to evaporate. A horse power is equivalent to the 
evaporation of 34 1/2 pounds of water per hour at 212° F. If 
milk is pasteurized to a temperature of 145° F. from initial 
temperature of 60° F. then it will require approximately one 
horse power for every 400 pounds of milk pasteurized per hour 
or it will require approximately one horse power for 300 pounds 
of milk per hour if it is heated to 180° or 185° F. It is advisable 
to provide for surplus boiler capacity, as forcing the boiler 
results in excessive fuel requirements. 



CHAPTER XII 

COST OF WATER 

Where the water is pumped in the creamery it is scarcely 
reaHzed that water costs money. In that instance it will also be 
unnecessary from the stand point of profit and loss to deter- 
mine the cost of the water for a small plant, as that will be in- 
cluded under the total cost of fuel, labor, suppHes, depreciation, 
etc. If the water is purchased from the city the item of expense 
is apparent, and first, then, the creamery manager begins to 
make an effort to reduce the cost thereof and in doing so it is 
essential to know what the water is used for. This is most 
readily determined by having separate meters on the water 
pipes leading to the different departments. Water may be used 
to advantage in great quantities in the creamery, but it should 
not be wasted. 

A. POWER REQUIRED FOR PUMPING WATER 

The amount of power required to elevate water varies directly 
with the quantity and with the height to which it is to be ele- 
vated. Therefore it requires twice as much power to elevate 
loo pounds 20 feet per minute as is required to elevate 50 pounds 
20 feet per minute, and it requires twice as much power to 
elevate 100 pounds of water 40 feet as is required to elevate the 
same amount of water 20 feet. 

The theoretical power required for pumping water is calcu- 
lated in terms of horse power from the following formula: 

Y_ gX8.3.sX (h+f) 
33,000 1 

1 One horse power is 33,000 foot pounds per minute. 
158 



COST OF WATER 



159 



When Y represents horse power required 

g represents gallons of water per mmute 
h represents height of elevation, measured from the 
surface of water in well to the highest point to which the water 
is raised. 

f represents the friction head in the water pipes. 
Example : 

Determine the theoretical horse power required to pump 
12,000 gallons of water per hour through a 4-inch pipe 200 feet 
long, the water being raised 100 feet. 
Answer: 

The friction head ^ is 1.22 X 2.^ = 2.8 for a pipe 100 feet long. 
For a pipe 200 feet long f= 2. 8X2 = 5. 6 

Y = ^-y^x 8.35 X (100+ 5.6) ^ p 

33,000 

As the efficiency of small pumps usually ranges from 60 to 45 
the theoretical horse power should be doubled when applying 
it to practical work. For large pumps a higher efficiency is 
obtained. 

The following table gives the friction loss in pounds pressure 
per square inch for each 100 feet of length in different size clean 
iron pipes discharging given quantities of water per minute. 
This friction loss is greatly increased by bends or irregularities 
in the pipe. 

To find ''friction head" in feet multiply figures by 2.3 

1 Table VII. 



i6o 



MANAGEMENT OF DAIRY PLANTS 
TABLE VII ' 



Gal. per 

minute 



S 

lO 

IS 
20 

25 
30 

35 
40 

45 

50 

75 

100 

125 
150 

175 
200 
250 
300 
350 
400 
450 
500 

6CXD 

700 



Size of pipes, inside diameter 



inch 



3 
13 

28 

50 
78 



I inch 



0.84 
3.16 
6.98 
12.30 
19.00 
27.50 
37.00 
48.00 



1% 
inch 



o 

I 
2 

4 
6 

9 
12 
16 
20 
24 
56 



31 
05 
38 
07 
40 

15 
40 
10 
20 
90 
10 



inch 



o. 12 
0.47 
0.97 
1.66 
2.62 
3-75 
5 05 
6.52 

8.15 
10.00 
22.40 
39.00 



2 inch 



o. 12 

0. 26 
0.42 
0.64 
0.91 

1 . 22 
1 .60 
2.02 
2.44 

532 
9.46 
14.90 
21. 20 
28. 10 
37-50 



2K 
inch 



o 
I 
3 
4 
7 
9 
12 

19 
28 



21 



81 
80 
20 
89 
00 
46 
47 
56 
06 



J inch 


















10 









20 





I 
I 

2 

3 

5 

7 

II 

IS 
19 

25 
30 


35 
74 
31 
99 
8S 
85 
02 
76 
20 
20 

SO 
00 
80 







4 inch 



27 



09 
23 
33 
49 
69 

94 

22 

89 
66 

65 
73 
01 

43 
54 
32 



B. WATER PUMPS 

The most important pumps to be considered by the creamery 
manager are the piston or plunger pump, the rotary and the 
centrifugal pump. The air lift may also be considered in this 
connection. 



1 Kidder, Architects' and Builders' Pocketbook, 191 2. 



COST OF WATER l6l 

I. The Piston or Plunger Pump. — The piston or plunger 
pump is most commonly used in the creamery. This may be 
belt driven or it may be operated with steam direct. The for- 
mer method is the most economical providing the pump is large 
enough, and that a supply tank of sufhcient size is provided so 
that all the pumping is done while the engine is being operated 
for other purposes. It would not be profitable to operate a 
large engine merely for the purpose of pumping water. Then 
it would be more advisable to install a pump driven by steam 
direct. 

II. The Rotary Pump. — The rotary and the centrifugal 
pumps may be used for shallow wells. For small lifts of 4 to 
5 feet they are considered to have a higher efficiency than the 
piston pumps, but for higher lifts their efficiency is less and they 
will not be practical for lifting water to exceed 15 to 20 
feet. 

III. The Air Lift. — The air lift consists of a well tubing, 
inside of it is a small pipe through which compressed air is 
blown. The compressed air lifts the column of water. By this 
system water may be lifted 130 feet above its lower level. It is 
said to be of greatest efficiency when the depth at which the 
discharge tube stands under water in the well is one and a half 
times the height of the discharge pipe above the water. By re- 
ducing the proportion of the pipe below the water surface the 
efficiency is gradually decreased and the system cannot be 
operated if the portion above the water is increased to one and a 
half times the size of the pipe below the water surface. ^ It 
is claimed 2 that the cost of raising 1,000 gallons of water by the 
air lift, including fuel, labor, oil, interest on cost of well, boiler, 
compressor, foundations, pipes, real estate, erection, taxes, and 
15 per cent for depreciation runs from one-fifth to two and one- 
half cents according to size of plant, height of lift, and other 
local conditions. 

1 Siebel's Compend. of Mechanical Refrigeration and Engineering, 191 1. 

2 Reported by Kidder in Architects' and Builders' Pocketbook, 1912. 



l62 MANAGEMENT OF DAIRY PLANTS 

C. ECONOMY IN PUMPING WATER AT THE 
CREAMERY 

It is not considered advisable for a creamery to buy water 
from the city if permanently located, as the city water is usually 
warmer than water drawn directly from a well. It will also be 
more expensive. The lowest rate for water used for creamery 
purposes that has come to the observation of the author is 
5 cents per i ,000 gallons. Most cities will charge 10 cents or even 
more. Some of the smaller towns that have comparatively 
expensive waterworks and labor are not able to pump water as 
economically as the creamery. 



CHAPTER XIII 

RENT, DEPRECIATION, INTEREST, AND 
INSURANCE 

A. RENT 

Where the creamery building is owned by the creamery 
company it is often customery not to charge rent but to charge 
interest on the investment, and insurance and depreciation 
on the building. There is a good reason, however, for charging 
rent, as the investment of money in real estate should be con- 
sidered as a separate investment and a detailed record should 
be kept thereof the same as of money invested in the busi- 
ness. Therefore a special ledger account should be kept of 
the building. The rent is entered monthly to the credit of 
this account, and insurance, depreciation, and the current rate 
of interest on the investment are entered on the debit side of 
the ledger. The current rate of rent should be charged for 
the property. From this record it will be evident whether or 
not the investment in real estate is profitable. Perhaps it 
might pay to sell the property and then lease it from the pur- 
chaser or possibly other property might be rented and be even 
more suitable for the business. Such factors are determined 
by studying local conditions. 

If more than one department is operated in the same building 
the rent should be divided among the departments in propor- 
tion to the amount of space and the value of the space occupied 
by each. The value of the space should be determined on the 
basis of what the income from it would be if it were leased to 
others. If the building were located in the retail district of a 
city it would soon be discovered that the front part, or perhaps 
the entire first floor, would net more money if leased for retail 

163 



164 MANAGEMENT OF DAIRY PLANTS 

purposes and not used for manufacturing. Often the office is 
located in the most desirable part of the building. If the proper 
rent were charged for the office room it might impress the 
creamery owner that the office would be of just as much service 
to the company if located in a part of the building less service- 
able for factory purposes. 

B. DEPRECIATION 

The depreciation deducted for wear and tear of machinery, 
equipment and building should be great enough to cover the 
natural decrease in value of the property. The average life 
of the various kinds of machinery and equipment should be 
determined and the rate of depreciation estimated in propor- 
tion thereto. The amount depreciated should always be such 
that the book value of the property is equivalent to the real 
value thereof. 

The life of a creamery boiler and engine is about fifteen years. 
Suppose the original cost of the boiler and engine were $500, 
then the monthly depreciation of the boiler and engine would be 

-^ = 12.78 

15X 12 

A churn if properly cared for should last for five years. In 
some of the larger plants it may not last for more than three 
years. The life of a milk can, including both wear and loss, is 
about three years, and of ice-cream containers and tubs from 
three to four years. 

The building, if built from hard-burned brick, cement blocks, 
or similar material, should last for forty years or more, if a 
frame structure, twenty years will be the life thereof. If the 
location is favorable it is often possible that the value of the 
ground on which the building stands will increase in proportion 
to the depreciation in the value of the building. It is safe, how- 
ever, to be conservative and not place fictitious values on any 
of the property. Such items as good will, advertising, etc., if 
considered as a financial asset of the company should be liberally 
depreciated, as such assets are not always marketable. 



RENT, DEPRECIATION, INTEREST, AND INSURANCE 165 

Repairs may or may not be charged against permanent 
improvements and then depreciated. Smaller repairs may 
conveniently be considered under the head of current expenses 
and charged against the expenses for the month or year when the 
repairs were made. Other repairs are of such a nature that 
they would naturally be added to the value of the permanent 
property and in the future stand for their share of depreciation. 

The manager who usually buys the supplies for the creamery 
is seldom authorized to purchase machinery or permanent 
equipment except by the approval of the board of directors; 
thus the company guards against any unnecessary increase of 
its investment. 

C. INTEREST 

The cooperative creamery association when organizing often 
borrows the money required for building, equipment, and operat- 
ing expenses. The interest and part of the principal is paid 
annually and is charged directly against the general expenses 
of the creamery. After several years, when the entire principal 
has been paid, the creamery is owned by the organization and 
the paying of interest ceases. No more loans should be made, 
as the amount accumulated to cover depreciation of the prop- 
erty or what is often known as sinking fund should remain in 
the treasury and should be sufficient for replacing worn-out 
machinery with new. 

The joint-stock company will continue to pay interest on 
stock held by its stockholders. Such interest, as well as interest 
on money borrowed, is charged directly against the general 
expenses. The current interest on money invested in any 
proprietary creamery should be considered as a general expense 
and the manufacturing department will pay its share thereof. 

D. INSURANCE 

Insurance as defined by Webster is a contract whereby, for 
a stipulated consideration called a premium, one party under- 
takes to indemnify the other against loss by certain risks. The 
party agreeing to make the compensation is called the insurer 



1 66 MANAGEMENT OF DAIRY PLANTS 

or the underwriter, the other party to the contract is called the 
insured, the written contract is called the policy, and the event 
insured against, the risk, 

I. Fire Insurance. — Fire insurance is a contract whereby 
the insurer indemnifies the insured against fire risk. This form 
of insurance should be carried at all times and in such amounts 
that not merely the building, machinery, and equipment are 
insured to their full value, but the stock of merchandise on 
hand should also be fully covered. If the business transacted 
is of such a nature that the stock of merchandise carried on 
hand is of much higher value at one season than at another, 
then it is usually advisable to add additional insurance to apply 
only for the season while the stock is of greatest value. 

It is the duty of the insured to give immediate notice in 
writing of fire loss to the insurance company and within 60 days 
after date of fire render an itemized staternent of losses sus- 
tained to the insurance company, this statement to be signed 
and sworn to by the insured. 

II. Employer's Liability Insurance. — Employer's liabihty 
insurance is a contract whereby the insurer indemnifies the 
insured against liability for accidents to employees. While 
such accidents are seldom heard of in the smaller plants they 
are rather frequent in larger manufacturing establishments. 

III. Fidelity Insurance. — Fidehty insurance is a contract 
which protects the employer against loss by the fraud or dis- 
honesty of his employees. This contract is usually known as a 
bond. It is to be recommended that any employee handling 
any of the company's money furnish a bond issued by some 
reliable fidelity insurance company. The company for which 
the employee works should pay the premiums on such bonds. 

In addition to the above forms of insurance there are many 
others such as steam-boiler insurance, plate-glass insurance, 
credit insurance, etc. 

rV. Insurance Records. — The manager should have some 
convenient method by which to know the amount of insurance 
carried on the different lines of property, and the date when the 
contracts expire. Form XV may answer for that purpose. 



RENT, DEPRECIATION, INTEREST, AND INSURANCE 167 

FORM XV 

Insurance Record 



Agent 


Property Insured 


Expiration 


Building 


Machinery 


Fixtures 


Stock 


Date 


Year 


C. Smith 


5, 000 




2,000 




Jan. 25 


19 15 


C. Jones 




3,000 






Feb. 28 


19 17 


Total 















All of the above-mentioned expenses enter into the cost 
of manufacturing of products. In addition to these there are 
other miscellaneous items not mentioned in the foregoing. 



CHAPTER XIV 

THE BUTTER OVERRUN AND THE RELATION BE- 
TWEEN CHEMICAL COMPOSITION OF BUTTER 
AND OVERRUN 

THE BUTTER OVERRUN 

The Actual Butter Overrun. — By this is understood the 
difference between amount of butter obtained and the amount 
of fat contained in the milk or cream used for the manufacture 
thereof. This definition is the most practical and fair to all 
concerned ; it is with this meaning that the term overrun is used 
in this book. 

The Final Butter Overrun. — By this is understood the dif- 
ference between amount of butter sold and amount of fat pur- 
chased for the manufacture thereof. This butter fat may be 
purchased locally or through receiving stations. 

This definition for overrun may be quite practical to the 
creamery manager, but unfair to the butter maker unless the 
latter is in full charge of cream purchasing, butter making and 
selling, as the loss of fat in any department where the cream is 
being handled from the time it is purchased until it is manu- 
factured into butter reduces the overrun. The advantage to 
the manager of determining the overrun in accordance with 
this definition is primarily that the overrun suggests to him a 
profit or loss; he is usually clear as to the amount of overrun he 
should obtain for making a profit. 

The Chemical Butter Overrun. — This is the difference 
between the amount of butter obtained and the amount of 
butter fat contained in the butter. In accordance with this 
definition the overrun is equal to ingredients other than the 
butter fat of which the butter is composed, and the overrun 
might thus be determined from chemical analysis of the butter. 

168 



THE BUTTER OVERRUN 169 

Per Cent Butter Overrun. — By per cent butter overrun 
is understood the amount of butter made in excess of each 
hundred pounds of butter fat used therefor. If 120 pounds of 
butter are produced from 100 pounds of butter fat, the overrun is 
20 per cent. Therefore if y stands for per cent overrun, b for 
pounds of butter obtained from f pounds of butter fat then 

b = f+ — Xy ory = ^^^X 100 
100 I 

Example: 1,800 pounds of cream containing 30 per cent of 
butter fat produce 630 pounds of butter. Determine per cent 
of butter overrun. 

Answer: 

630 — 1,800 X TWO 



1,800 X ^"^ 



X 100 = 16 2/3 per cent 



100 
The above formula may also be written as follows: 

'b 

y = 100 



(7-) 



Thus the per cent of overrun from the foregoing example is de- 
termined as follows: 



/ 630 

y = 100 I — - 

V 1,800 x//o 



i j = 16 2/3 per cent 



The Financial Value of the Overrun. — The manufacturers 
of butter consider that the overrun or even a part thereof is 
sufficient to pay for manufacturing expenses and dividends on 
the investment. It is therefore evident that the matter of 
overrun is of vital importance to the creamery manager. He 
knows the manufacturing cost per pound of butter, and if he 
also knows the value of the overrun based on each pound of 
butter manufactured, or on each pound of butter fat used in 
manufacturing, then he will be fairly well informed as to the 
extent of his profit or loss. The exact value of the overrun 
per pound of butter or of butter fat, when the overrun and 
the selling price of butter are known, is determined as follows: 

If y represents the value of overrun per pound of butter, 
z the value of overrun per pound of butter fat, d the market 



lyo MANAGEMENT OF DAIRY PLANTS 

value of the butter, and g the per cent of overrun obtained, 
then 

lOO+g 

z = dX^ 

lOO 

Example: The overrun is 20 per cent on butter sold for 30 
cents per pound; determine the value of the overrun per pound 
of butter and per pound of butter fat. 

y = 30 X 20/120 = 5 cents. 
z = 30 X 20/100 = 6 cents. 
Tables Nos. VIII and IX illustrate the effect which the in- 
crease or decrease of per cent of overrun and the market value 
of the butter have on the value of the overrun per pound of 
butter and per pound of butter fat. 

RELATION BETWEEN CHEMICAL COMPOSITION 
OF BUTTER AND OVERRUN 

Composition of Butter. — The composition of normal Ameri- 
can butter in accordance with the analysis made by the De- 
partment of Agriculture,^ Washington, D. C, of 695 samples 
is as follows: 

Per cent 

Fat 82.41 

Moisture 13 90 

Salt 2.51 

Curd 1. 18 

Total 100 . 00 

Butter Fat Content of Butter. — The butter fat is the 
principal ingredient both in regard to amount and to its com- 
mercial value. An increase in fat content of butter means a 
corresponding decrease in butter overrun and vice versa. An 
increase in fat content of the butter increases the cost of the 
butter to the manufacturer. 

1 Bui. 149, B. A. I. 



THE BUTTER OVERRUN 



171 



Moisture Content of Butter. — The moisture is second 
in importance because it is present in comparatively large 
amounts and the per cent thereof is readily increased or re- 
duced, and the overrun thereby correspondingly increased 
or reduced. Moisture is an essential ingredient, inasmuch as it 
adds pliability to the butter. However, the body of the butter 
becomes short and injured if the moisture content is increased 
to above the amount which is normally held in the butter. 
Normal butter, in accordance with the Federal standards, 
should contain less than 16 per cent of moisture. 

The average moisture content of the butter cannot be con- 
sidered uniform through the year, even if the butter is manu- 
factured under uniform conditions, because the chemical com- 
position of the butter fat is influenced by various factors. 
Butter containing a high per cent of softer fats will contain 
more moisture than butter containing less of such fats. This 
explains the tendency of the butter to take up more moisture 
during the spring of the year than during the winter season. 

TABLE VIII 
Table Giving Value of Overrun per Pound of Butter and per Pound 
OF Butter Fat when Market Value of Butter is 30 Cents per 
Pound 



Per cent 


Market value 


Value of overrun 


Value of overrun 


overrun 


of butter 


per pouitd butler 


per pound butter fat 




Cents 


Cents 


Cents 


15 


30 


3.913 


4-5 


16 


30 


4.138 


4 


8 


17 


30 


4-359 


S 


I 


18 


30 


4576 


5 


4 


19 


30 


4.790 


5 


7 


20 


30 


5.000 


6 





21 


30 


5 . 207 


6 


3 


22 


30 


5.410 


6 


6 


23 


30 


5.610 


6 


9 


24 


30 


5.807 


7 


2 


25 


30 


6.000 


7 


5 



172 



MANAGEMENT OF DAIRY PLANTS 



TABLE IX 

Table Giving Value of Overrun per Pound of Butter and per Pound 
OF Butter Fat when a 20 per cent Overrun is Obtained 



Per cent 


Market value 


Fa/z/e 0/ overrun 


Value of overrun 


overrun 


of butter 


per pound butter 


per pound butter fat 




Cents 


Cents 


Cents 


20 


25 


4.167 


5-0 


20 


26 


4-333 


5-2 


20 


27 


4.500 


S-4 


20 


28 


4.667 


5.6 


20 


29 


4.833 


5-8 


20 


30 


5.000 


6.0 


20 


31 


5-167 


6.2 


20 


32 


5-333 


6.4 


20 


33 


5 - 500 


6.6 


20 


34 


5.667 


6.8 


20 


35 


5 833 


7.0 


20 


36 


6.000 


7.2 


20 


37 


6.167 


7-4 


20 


38 


6.333 


7.6 


20 


39 


6.500 


7.8 


20 


40 


6.667 


8.0 


20 


41 


6-833 


8.2 


20 


42 


7.000 


8.4 


20 


43 


7.167 


8.6 


20 


44 


7-333 


8.8 


20 


45 


7.500 


9.0 


20 


46 


7.666 


9.2 


20 


47 


7-833 


9.4 


20 


48 


8.000 


9.6 


20 


49 


8.167 


9.8 


20 


SO 


8.333 


10. 


20 


52 


8.667 


10.4 


20 


54 


9.000 


10.8 


20 


56 


9-333 


II. 2 


20 


58 


9.666 


II. 6 


20 


60 


10.000 


12.0 


20 


62 


10-333 


12.4 



THE BUTTER OVERRUN 



173 



TABLE IX — Continued 



Per cent 


Market value 


Fa/«e of overrun 


Value of overrun 


overrun 


of butter 


per pound butter 


per poufui butter fat 




Cents 


Cents 


Cents 


20 


64 


10.666 


12.8 


20 


66 


II .000 


13.2 


20 


68 


11-333 


13.6 


20 


70 


11.666 


14.0 


20 


72 


12.000 


14.4 


20 


74 


12.333 


14.8 


20 


76 


12.666 


15-2 


20 


78 


13.000 


15-6 


20 


80 


13 -333 


16.0 



I. Moisture Control. — It is possible for the butter maker, 
by careful study of conditions, to regulate the moisture content 
so it may remain nearly constant regardless of the composition 
of the butter fat. The principal factors to be considered in 
this connection and factors which are under control of the 
butter maker are presented in bulletin No 76, Iowa Experiment 
Station, as follows: 

"Churning in a warm room and raising the temperature 
of the cream and wash water cause the butter to become softer 
and unite into lumps, in which condition it holds and retains 
moisture to a greater extent than when butter is firmer. 

"An increase in the size of granules due to over-churning 
increases the moisture content gradually and only to a small 
extent. By churning into lumps, the moisture content of butter 
is increased greatly. 

"The moisture content of butter can be regulated by con- 
troUing the temperatures, the amount of wash water, and 
degree of churning in the wash water. 

"The richer the cream is at the time of churning, the more 
moisture the butter obtained will contain, providing all other 
conditions are alike. 



174 MANAGEMENT OF DAIRY PLANTS 

"The degree of ripeness has very little if any influence upon 
the moisture content of butter. 

''When all other conditions are the same, butter from pas- 
teurized cream contains about i 1/2 per cent less moisture than 
that made from raw cream. 

"If it were possible to keep all conditions alike the fullness 
of churn will have no influence on the moisture content of 
butter." 

In accordance with results obtained by the Indiana Experi- 
ment Station ^ the acidity of cream, method of salting, and 
amount of salt used do not materially influence the moisture 
content of the finished butter, but large churnings yield butter 
with a higher per cent moisture than small churnings, and 
working butter in water regardless of temperature increases the 
moisture content of butter. 

Moisture tests should be made from each churning so that 
the butter maker may learn to control the moisture content of 
his butter. Such tests are also of importance so that he may 
know whether or not he is making a legal butter. It will be 
taken for granted that butter makers and creamery managers 
are fully familiar with the use of the moisture test. 

Salt Content of Butter. — The salt content of butter may 
vary from i to 5 per cent. Thus it becomes evident that the 
salt content influences the overrun materially. Salt is added to 
butter primarily because the consumers demand it. The salt 
content should be uniform: First, because it influences the 
uniformity of the flavor, and second, the profit obtained 
by the manufacturer from added salt should remain con- 
stant. 

The markets influence the amount of salt that may be added 
to the butter. Enough salt should be added to satisfy the 
consumers and no more. The European markets demand a 
lower salt content than the markets in the United States. 
The Eastern markets in the United States demand from i 1/2 to 
21/2 per cent salt and would not be satisfied with butter con- 

1 Bulletin 160, 1912, by Hunziker, Mills, and Spitzer. 



THE BUTTER OVERRUN 175 

taining from 3 to 5 per cent salt, which is often preferred in the 
Western markets. 

1. Amount of Salt that May be Dissolved in Butter. —The 
amount of salt that may be dissolved in butter depends upon 
the moisture content of the butter, as the fat has no power as a 
salt solvent. Well-worked butter will contain brine of as much 
as 16.78 per cent sodium chloride. ^ Suppose the butter con- 
tains 15.5 per cent of moisture, then the amount of salt con- 
tained in the solution in such butter is 2.6 per cent. Any 
amount contained in excess of that will be left in the butter as 
undissolved salt. If the proportion of undissolved salt becomes 
too high, the butter appears gritty. It is possible that butter 
containing only 2.5 per cent of salt may appear gritty. This 
may be due either to a low water content of the butter or to 
insufficient working. 

2. Unsalted Butter. — Unsalted butter is manufactured from 
ripened cream, no salt being added to the butter. This is 
often incorrectly called sweet butter, which term rightfully 
belongs only to such butter as is made from unripened cream 
and without the addition of salt. The moisture and casein 
content of unsalted butter is practically the same as that of 
salted butter while fresh, but as the butter becomes older the 
salted butter has a tendency to lose more in moisture content 
than the corresponding unsalted butter. The greater difference 
between the composition of the two kinds of butter, however, 
is the lack of salt in one and a corresponding increase in fat 
which brings about a corresponding decrease in the overrun. 
Unsalted butter is therefore of greater value per pound to the 
manufacturer than salted butter. The corresponding value of 
unsalted butter may be determined as follows: 

Let s represent per cent of salt contained in salted butter, 

p, price per pound of salted butter, and y, price per pound of 

unsalted butter. 

Then 

100 

y = p 

100 — s 

> Bulletin 80, by McKay and Larsen, Iowa Experiment Station, 1904. 



176 MANAGEMENT OF DAIRY PLANTS 

Example: What should be charged for unsalted butter when 
butter containing 3 per cent of salt is sold for 30 cents per 
pound? 

Answer: 

y = 30 X = 30.93 cents per pound. 

100 — 3 

If allowance is made for cost of salt in the salted butter and 
the additional shrinkage in moisture of the same butter, then 
the difference between the value of salted and unsalted butter 
will be slightly decreased. 

3. Salt Control. — The loss of salt during the working proc- 
ess is a factor which is usually given but very little attention. 
The butter when worked should be of such a consistency that 
it will most readily retain the salt. By the careful butter maker 
the loss of salt may be reduced to less than 5 per cent. How- 
ever, most operators will lose more. If one ounce of salt were 
added to each pound of unsalted butter and if all this salt were 
retained, then 100 pounds of unsalted butter would produce 
106.25 pounds of salted butter. The salt content of this butter 

figured in per cent would be equal to — ^ =5-88 per cent. 

106.25 

It is most convenient in practical work to use the amount of 
butter fat in the churn as a basis for the amount of salt to add. 
The per cent of salt which should thus be obtained in the 
finished butter if no salt were lost during the process of working 
is determined as follows: 

Let y represent the per cent of salt the finished butter 
should contain. 

a represent the amount of salt in ounces added to each 
pound of butter fat. 

m represent the per cent moisture, casein, and ash contained 
in the finished butter. This figure is reasonably well known 
by the butter maker. 

f represent the per cent of fat contained in the finished 
butter. 



THE BUTTER OVERRUN I77 

Then, 

I = y X — 
a 

yX [-y+m= 100 

a 



y = 



100 — m 

1 6 



a I 



Example : 

A sample of salted butter contains 15.5 per cent of moisture 
and 1.5 per cent of casein and ash; if .6 ounce were added for 
each pound of butter fat how much salt in per cent would be 
contained in the finished butter if no loss of salt occurred? 

Answer: 



(1 5.5+ 1. 5) 



y = 100^ ^'g , — = 3 per cent of salt. 



Suppose a sample of butter which had been salted in the 
proportion of .6 ounce of salt per pound of butter fat was 
found to contain 81 per cent fat, 15 1/2 moisture, i 1/2 casein 
and ash, then the per cent of salt retained in the butter would 
be equal to 

100 — (81 + 1 15.5 + 1.5) ^^ ^ ^ 

, T. ^, - X 100 = 65.84 per cent. 

»I A T6 

For determining the amount of salt to add per pound of 
butter fat to obtain a definite per cent of salt in the finished 
butter the following formula may be used: 

16 
a = 



100— m 
— I 



Example: 

How much salt should be added per pound of butter fat to 
obtain 4 per cent in the finished product when m = 16 per cent? 



178 MANAGEMENT OE DAIRY PLANTS 

Answer: 

a = = .8 ounce. 

100 — 16 
• 1 

4 

The amount of salt to add for every hundred pounds of fat 
may be quite accurately determined in accordance with the 
following simple formula, if the fat content of the finished but- 
ter is reasonable constant. 

Per cent salt desired in butter X z: — : — : 

Per cent fat m butter 

Example: 

How much salt should be added per hundred pounds of 
butter fat to obtain 4 per cent in the finished product when the 
fat content of the finished butter is 80 per cent? 

Answer: 

4 X — ■ = 5 pounds of salt. 

It is essential that the butter maker tests each churning for 
salt in order to gain control over the salt content of the butter. 
Many operators have not become familiar with the operation of 
the salt test. For that reason, the following system of testing 
for salt is outlined. ^ 

4. The Salt Test. — For determining the salt content in 
butter the following reagents and glassware will be required: 

A silver nitrate solution 

A potassium chromate solution or indicator 

One 500 c. c. flask 

One 250 c. c. graduate 

One 50 c. c. burette 

One 25 c. c. pipette 

One 2 ounce drop bottle for indicator 

Two beakers or cups 
A. The Silver Nitrate Solution. — The silver nitrate solu- 
tion if held for any great length of time will gradually undergo 

1 This system is a modification of the official method of testing for salt in butter. 



THE BUTTER OVERRUN 1 79 

chemical changes and be reduced in strength. Such changes 
take place very readily if exposed to light. It is therefore 
necessary for the operator to prepare his own solutions, which 
should be prepared in rather small quantities. Chemically pure 
silver nitrate, AgN03, should be used. This may for the sake 
of convenience be weighed into small gelatin capsules, each 
capsule containing 2.906 grams. If chemical balances are not 
available a druggist might be able to do such weighing; if not, 
the capsules of silver nitrate might be supplied by a manu- 
facturing chemist. The capsule is closed and wrapped with tin- 
foil to exclude the light. Such capsules have been kept in a 
dark, dry place for several months in perfect condition, although 
it is recommended that the silver nitrate be put up in small 
brown bottles if to be kept to exceed two months. 

Preparing the Silver Nitrate Solution. — A gelatin capsule is 
placed in the flask and from 200 to 300 c. c. of distilled water 
heated to within a few degrees of boiling are added. The flask 
is shaken with a gentle rotary motion until the capsule with its 
contents has been dissolved. The flask is then wrapped with 
brown paper in order to exclude the light and it is left in a dark 
place until the temperature of its contents is the same as that 
of the room. The flask is then filled to the 500 c. c. mark with 
distilled water (condensed steam) of room temperature. The 
solution is kept in a place where light is excluded. 

B. The Potassium Chromate Solution. — Ten grams of 
potassium chromate are dissolved in 90 c. c. of distilled water. 

C. Manipulation of the Test. — A representative sample 
from the butter to be tested is secured. The beaker containing 
the butter is placed in warm water until the butter which is 
being constantly stirred is of the consistency of a sirup, when it 
is transferred to ice water and stirred with a spatula until the 
butter congeals. Ten grams of this sample are weighed into a 
beaker. To this is added about 25 c. c. of hot distilled water. 
After the butter has been thoroughly dissolved the contents 
of the beaker are transferred to the 250 c. c. graduate. The 
beaker is rinsed several times with distilled water which is 
transferred to the graduate, using about 25 c. c. of water at a 



l8o MANAGEMENT OF DAIRY PLANTS 

time. The graduate is finally filled with cold distilled water to 
the 250 c. c. mark, the butter fat to be above the mark; it is 
closed with a cork stopper and shaken gently a couple of times 
to insure that the contents of the graduate are thoroughly mixed. 

From the brine solution thus prepared 25 c. c. are taken 
with the pipette. The solution should be of nearly room tem- 
perature, yet for all practical purposes from 10 to 20 degrees of 
variation will not affect the results. The sample taken with the 
pipette is transferred to a beaker. Six drops of the potassium 
chromate indicator are added and from the burette is added 
silver nitrate solution until the color changes to a reddish or 
brownish tint. The reading is taken from the burette of the 
number of c. c. of silver nitrate required. 

The silver nitrate solution has been prepared to such a 
strength that it will require 5 c. c. of it for each per cent of salt. 
Therefore if it required 15 c. c. of the solution to produce the 
brownish color, the butter contains 3 per cent of salt. 

No. c. c. of silver nitrate solution required ^ . . 
— ■ = per cent of salt 

5 
in butter. 

Curd Content of Butter. — The curd of the butter, however 
important to the butter maker in the production of high flavor, 
is not considered by the manager to be a factor of great impor- 
tance in butter overrun. The curd content of the butter cannot 
be changed to any great extent without injuring the quality of 
the butter. A butter of a high curd content will usually pos- 
sess poor keeping qualities. 



CHAPTER XV 

MECHANICAL LOSSES AND THEIR INFLUENCE ON 
BUTTER OVERRUN 

Mechanical losses are such as occur during the various 
stages of the manufacturing process and in the testing of milk 
and cream. Mechanical losses are not absolutely avoidable, 
yet many of such losses may often be materially reduced. 

LOSSES THAT OCCUR DURING THE 
MANUFACTURING PROCESS 

Fat Losses in Skim Milk.— The loss of butter fat in the skim 
milk is a factor of importance to creameries receiving whole 
milk. In accordance with Danish experiments,! the aver- 
age loss of fat in skim milk based on a series of experiments 
with three different types of factory cream separators amounts 
to about .07 per cent. It will probably be close to the actual 
loss if it is estimated at .1 per cent for the American creameries. 

Washburn, Dahlberg, Sorensen, and M. P. Mortensen 2 
found that 1.64 per cent of the total fat received at the factory 
was lost in the skim milk. 

For ascertaining the amount of fat lost in the skim milk, the 
amount of skim milk obtained is not conveniently determined 
by weighing, but it may readily be calculated. For that pur- 
pose let m represent pounds of whole milk to be skimmed, s, 
pounds of skim milk, c, pounds of cream obtained, p, the per 
cent of fat contained in the whole milk, pi, the per cent of 
fat contained in the cream, and a, the per cent of fat in the 
skim milk. 

1 Beretning No. 70 fra den Kgl. Veterinaer og Landbohojskoles Laboratorium 
for landokonomiske Forsog, 1910. 

2 Bulletin 177, Minnesota, 1918. 

181 



l82 MANAGEMENT OF DAIRY PLANTS 

The value of s is then determined as follows: 

m X p = (m — s) pi + s X a or 

m (pi — p) 

s = — 

pi — a 

Or pounds skim milk obtained = pounds whole milk X 
per cent fat in cream — per cent fat in whole milk 
per cent fat in cream — per cent fat in skim milk 

This formula becomes practical, inasmuch as the weight of 
the whole milk skimmed is always known, and the test of the 
cream and skim milk obtained as well as the test of the whole 
milk are known figures. 

As the weight of the cream in a whole milk plant is usually 
determined with difficulty, the above formula may also be of 
value in determining the amount of cream obtained from the 
milk as c = m— s. Or without figuring the amount of skim 
milk, the amount of cream may be determined from the fol- 
lowing formula: 

m (p — a) 



c = 



Pi— a 



Or pounds cream obtained = pounds whole milk X 
per cent fat in whole milk —per cent fat in skim milk 

per cent fat in cream — per cent fat in skim milk 

Example I. — Determine the amount of fat contained in the 
skim milk obtained from skimming 30,000 pounds of milk 
testing 3.6 per cent of fat when the cream obtained tests 33.6 
per cent of fat and the skim milk .1 per cent of fat. 

Answer: 

s = 30,000(33.6-3.6) ^ ^^^g^^^^^ p^^^^^^ 

33-6 --I 
26,865.67 X .001 »= 26.87 pounds of butter fat. 

Example II. — Determine the overrun obtained in a cream- 
ery for a day when they received 20,000 pounds of 4 per cent 



MECHANICAL LOSSES 183 

milk from which was produced 35 per cent cream. The loss of 

butter fat in skim milk was .1 per cent. The cream was made 

into butter containing 80 per cent of butter fat. 

Answer: 

20,000 ( 4 — .1) 
c = = 2,234.96 pounds. 

35 — -I 

The amount of butter fat used for making the butter is the 
amount contained in the cream or 

2234.96 X .35 = 782.236 pounds. 

The overrun is determined on amount of butter fat pur- 
chased as whole milk. This overrun is therefore equal to 

(782.236 X 100/80 — 20,000 X 4/100) . . 

7 X 100 = 22.224. 

20,000 — 4/100 

Had no butter fat been lost in the skim milk then the over- 
run obtained would have been equal to 

100 — 80 - . 

X 100 or 25 per cent. 

80 

Therefore the overrun due to the loss of ,1 of a per cent fat 
in the skim milk has been reduced 2.776 per cent. It will be 
noted from Table X that this reduction in overrun is decreased 
slightly as the fat content of the butter increases. It is in- 
creased as the fat content of the whole milk is decreased 
(Table XI), and is decreased as the richness of cream decreases 
(Table XII). 



i84 



MANAGEMENT OF DAIRY PLANTS 



TABLE X 

Table Illustrating how the Fat Content of the Resulting Butter 
Influences the Reduction in per cent of Overrun when .i of 
I per cent Fat is lost in the Skim Milk 













Per cent 


Per cent 


Per cent 


Per cent 


Per cent 


Per cent 




overrun 


reduction 


fat in 


fat lost 


fat in 


fat in 


Per cent 


had no loss 


in overrun 


whole 


in skim 


cream 


butter 


overrun 


occurred in 


due to loss 


milk 


milk 


obtained 






skim milk 


in skim milk 


4 




35 


8o 


22. 224 


25.000 


2.770 


4 




35 


8i 


20.725 


23-457 


2.732 


4 




35 


82 


19.234 


21.951 


2.717 


4 




35 


83 


17-807 


20.482 


2.67s 


4 




35 


84 


16.406 


19.048 


2.642 


4 




35 


85 


15-035 


17.647 


2.621 


4 




35 


90 


8.644 


II . Ill 


2.467 



TABLE XI 

Table Illustrating how the Fat Content of the Whoie Milk In- 
fluences THE Reduction in Overrun when .1 of i per cent Fat is 
lost in the Skim Milk 













Per cent 


Per cent 


Per cent 


Per cent 


Per cent 


Per cent 




overrun 


reduction 


fat in 


fat lost 


fat in 


fat in 


Per cent 


had no loss 


in overrun 


ivhole 


in skim 


cream 


butler 


overrun 


occurred in 


due to loss 


milk 


milk 


obtained 






skim milk 


in skim milk 


4 


. I 


35 


80 


22. 224 


25 


2.776 


3-5 


. I 


35 


80 


21.774 


25 


3.226 


3 


. I 


35 


80 


21. 179 


25 


3.821 



MECHANICAL LOSSES 



185 



TABLE XII 

Table Illustrating how the Fat Content of Resulting Cream In- 
fluences THE Reduction in Overrun when .1 of i per cent Fat is 
lost in THE Skim Milk 













Per cent 


Per cent 


Per cent 


Per cent 


Per cent 


Per cent 




overrun 


reduction 


fat in 


fat lost in 


fat in 


fat in 


Per cent 


had no loss 


in overrun 


whole 


skim 


cream 


butter 


overrun 


occurred in 


due to loss 


milk 


milk 


obtained 






skim milk 


in skim milk 


4 


. I 


40 


80 


22. 180 


25 ■ 


2.820 


4 


. I 


35 


80 


22. 224 


25 


2.776 


4 


.1 


30 


80 


22. 283 


25 


2.717 


4 


. I 


25 


80 


22.365 


25 


2.635 


4 


.1 


20 


80 


22.487 


25 


2.513 



Fat Losses in Buttermilk. — The loss of fat in buttermilk 
will affect the overrun to a less degree than the loss of butter 
fat in skim milk, because the proportion of buttermilk is small 
as compared with the proportion of skim milk. The average 
per cent of fat lost in the buttermilk during a series of ex- 
periments carried on by the Iowa Experiment Station 1 under 
ordinary factory conditions was .168 per cent from sour cream 
pasteurized while sweet. The loss from churning the same 
kind of cream raw was .198 per cent. Sour cream pasteurized 
by flash heat produced a loss of .207 per cent. The same kind 
of cream churned raw produced a loss of .152 per cent. Sour 
cream pasteurized by the holding method or vat method 
caused a loss of .225 per cent while the same kind of cream 
churned raw produced a loss of only .098 per cent. 

In accordance with Minnesota experiments 2 the buttermilk 
retained 0.93 per cent of the total fat received when handling 
whole milk. 



1 Bui. 156, Iowa Experiment Station, iqi8. 
■•'Bulletin 177, Minnesota Ex. St., 1918. 



l86 MANAGEMENT OF DAIRY PLANTS 

The amount of fat lost in the buttermilk is readily determined, 
as the weight of the cream churned is a known quantity and the 
weight of the butter obtained is also known. The weight of the 
buttermilk in which the loss occurs is the difference between the 
weight of the cream churned and the weight of unsalted butter 
obtained. 

Example. Determine the amount of butter fat lost in the 
buttermilk from churning 2,000 pounds of cream when 700 
pounds of butter containing 3 per cent of salt is obtained, and 
the buttermilk contains .2 per cent of fat. 

Answer: (2,000 — 700 X .97) .002 = 2.642 pounds. 

A formula similar to that used for determining fat loss in 
skim milk is also applicable in this connection. The following 
formula may be used when unsalted butter is concerned: 

c(F-pi) 
F-f 

In the foregoing b is to represent pounds of buttermilk ob- 
tained, f, per cent of fat in the buttermilk, and F, the per cent 
of fat in the butter. These factors are not absolutely correct in 
practical applications, as the water used for washing the butter 
may have a slight influence on the moisture content of the but- 
ter; however, not to such an extent that it will be of importance 
for the creamery manager to consider. 

It will be noticed from Table XIII that the loss of .1 per cent 
of fat in the buttermilk reduces the overrun .2 per cent when the 
fat content of cream used is 35 per cent and of the butter manu- 
factured 80 per cent. This factor decreases slightly as the fat 
content of the butter increases and it increases as the fat con- 
tent of the cream decreases (Table XIV). 

Miscellaneous Manufacturing Losses. — Such losses occur 
in transferring cream from the receiving cans to vats, from 
vats to churns, and in handling cream or butter. They should 
not normally exceed .2 of one per cent of butter fat received. In 
accordance with Minnesota experiments ^ about one-half 
of one per cent of the total fat received was lost in vats, pipes, 

1 Bulletin 177, Minnesota Ex. St., 1918. 



MECHANICAL LOSSES 



187 



etc., where handling whole milk. In handling small amounts 
and by transferring for pasteurization these losses may be 
slightly increased; however, not at any time in excess of .5 per 
cent. A loss of .2 per cent will reduce the overrun .25 per cent 
when considering that the fat content of the butter is 80 per 
cent. If the fat content of butter becomes less, this loss will 
slightly increase the loss in overrun and vice versa. 

TABLE XIII 

Table Illustrating how the Fat Content of Resulting Butter 
Influences the Reduction in Overrun when .1 of i per cent Fat 
IS LOST IN Buttermilk 













Per cent 


Per cent 


Per cent 


Per cent 




Per cent 


reduction 


fat lost in 


fat in 


fat in 


Per cent 


overrun had no 


in overrun 


butter- 


cream 


butter 


overrun 


loss occurred in 


due to loss 


milk 








butterniilk 


in buttermilk 


. I 


35 


80 


24 . Soo 


25 . 000 


.2 


.1 


35 


85 


17450 


17.647 


.197 


.1 


35 


90 


10.917 


II . Ill 


.194 



TABLE XIV 

Table Illustrating how the Fat Content of Cream Influences the 
Reduction in Overrun when .1 of i per cent Fat is lost in Butter- 
milk 













Per cent 


Per cent 


Per cent 


Per cent 




Per cent 


reduction 


fat lost in 


fat in 


fat in 


Per cent 


overrun had no 


in overrun 


butter- 


cream 


butter 


overrun 


loss occurred in 


due to loss 


milk 








buttermilk 


in buttermilk 




40 


80 


24.8425 


25 


•1575 




35 


80 


24 . 8000 


25 


.2000 




30 


80 


24 . 7400 


25 


.2600 




25 


80 


24.6560 


25 


•3440 




20 


80 


24.5300 


25 


.4700 



1 88 MANAGEMENT OF DAIRY PLANTS 

The following example will illustrate how miscellaneous 
losses may be determined. 

Example: 

2,000 pounds of 30 per cent cream were purchased. From 
this were manufactured 740 pounds of butter containing 80 per 
cent of butter fat and 3 per cent of salt. The buttermilk con- 
tained .2 per cent of fat. Determine miscellaneous losses. 

Answer: 

Amount of fat lost in buttermilk is equal to (2,000 — 740 
X -97) X .002 = 2.5644 pounds. 

Amount of butter fat lost due to miscellaneous losses is equal 
to 

(2,000 X .30— 2.5644) — 740 X .80 = 5.4356 pounds. 
5.4356 X 100 _ 



2000 X .30 



.9056 per cent. 



LOSSES DUE TO INACCURACY IN WEIGHING 
AND TESTING 

Losses Due to Inaccuracy in Weighing. — It should hardly 
be necessary to consider such losses; nevertheless they fre- 
quently occur, and the manager should be ready to guard 
against them. Often the receiving scales on which the milk or 
cream is weighed are not as sensitive as they should be. This 
may be due to the buying of poor scales or the scales may not be 
kept clean and in working order. Scales on which cream is 
weighed should always be sensitive to one-fourth of a pound. 
It is possible to save ten dollars on the first cost by buying 
second-grade scales, but it is also possible for such scales to lose 
several hundred dollars annually to the creamery. Poor 
scales are too expensive at any price, but when good scales have 
been purchased it is the duty of the manager to see to it that 
they are always kept in good working order. The scales should 
be balanced several times daily and once or twice daily they 
should be tested with a standard weight. A fifty-pound stand- 
ard weight is very satisfactory for that purpose. 



MECHANICAL LOSSES 



189 



Losses Due to Inaccuracy in Testing. — The testing de- 
partment is perhaps the department which experiences greater 
difficulty than any other department in giving satisfaction. It 
should also be realized by the managers that great losses may 
occur in that department unless properly checked. Form XVI 
may serve as a convenient factory report for checking, not 
merely the losses due to testing and weighing, but other me- 
chanical losses as well. 

FORM XVI 

Churn Record 



Vat 
no. 


Lbs. 
cream 


Lbs. 
starter 


Vat 
test 


Lbs. fat 
vat test 


Lbs. fat 
imi. test 


Butter 
churned 


Over 
run 


Fat 


Mois- 
ture 


Casein 


Salt 


Ash 





































































































































































































































































The principal reasons for errors in the testing department 
are inaccurate glassware, inaccurate measure or weight of 
sample, improper care of samples, and improper method of 
reading the tests and general carelessness on the part of the 
operator. 

I. Inaccurate Glassware. — All glassware should be properly 
calibrated before it is brought into service. Several states 
have laws making it a criminal offense to use inaccurate glass- 
ware for testing. Even without such laws it should be to the 
interest of all creamery operators to assure themselves of the 
accuracy of the glassware they are using. It was found by the 



IQO MANAGEMENT OF DAIRY PLANTS 

Indiana Station ^ that 21 4/10 per cent of the cream-test bottles 
used in Indiana creameries were incorrect; the maximum error 
was 10 per cent. 

2. Inaccurate Measure or Weight of Sample, — Incorrect 
measure or weight of samples may be due to an inaccurate 
pipette, or to balances that are not sensitive, or to carelessness 
on the part of the operator. 

When the sample is measured, as is done when testing milk, 
the pipette used should be calibrated and if found correct 
it is evident that it will measure out the correct amount, if the 
pipette is also kept properly cleaned. The weights should be 
tested against standard weights. It is often convenient to 
have a standard 9 gram or 18 gram weight. This weight is not 
used for any other purpose than that of testing the weights 
which are in daily use. The state dairy commissioners are 
usually willing to test weights for operators in their respective 
states. 

Balances should be sensitive to one centigram. If the bal- 
ances are not sensitive it usually results in too high tests and a 
loss to the creamery. To keep balances sensitive they should 
be properly cleaned and kept in a dry place, preferably in a 
special case provided therefor. A balance constructed for 
carrying several bottles at each weighing is less sensitive than 
one constructed for carrying only one or two bottles. 

The operator when weighing out samples of cream should 
not sacrifice accuracy for speed. It is considered that an ex- 
perienced operator can test from 200 to 300 cream samples 
daily and do accurate work. 

3. Improper Care of Samples. — A composite cream sample 
should never be considered accurate unless cream from which 
the sample is prepared is very thin. A composite sample taken 
from cans containing cream varying greatly in fat content will 
naturally be far from correct, as the sampler used will discharge 
less of the richer than of the thinner cream. Furthermore, if 
the sampler is not thoroughly cleaned each time when it is 
brought from the rich to the thin cream, it is quite possible that 

1 Bui. 14s, Indiana Agr. Experiment Station, 1910. 



MECHANICAL LOSSES I9I 

rich cream remaining in the Lube will be discharged together 
with part of the thinner sample. The safest system to adopt is 
that of taking a sample from each can of cream, testing it 
separately, and cleaning the sampler in warm water for each 
sample taken. But if it is found convenient to take only one 
sample from two or more cans of cream, then the cream should 
first be thoroughly mixed in a receiving vat or can. 

By daily testing the manager is enabled to check the mechan- 
ical losses daily and thus save money for the creamery. It 
has been the experience of the practical manager that the 
cream samples usually increase in per cent of fat by age. The 
Indiana Experiment Station has found that exposure of 
samples for two weeks to the receiving-room temperature in 
summer caused sufficient evaporation to raise the test 3.5 per 
cent even in bottles with a tight seal. When samples were kept 
in loosely sealed bottles there was a rise of i per cent in the test 
of the samples kept in the refrigerator and 4.5 per cent in the 
test of the samples kept on the receiving platform. In open 
bottles the test of the samples in the refrigerator rose 3.5 per 
cent, and that of the samples on the receiving platform in- 
creased 10.5 per cent. 

Table XV ^ illustrates the financial loss sustained by a 
creamery taking composite samples under the above-stated con- 
ditions. These calculations are based on the creamery receiv- 
ing 20,000 pounds of fat per month. The loss of fat is figured 
on 39 1/2 per cent cream; the price of fat is calculated at 25 
cents per pound. 

1 Bui. 14s, Indiana Agr. Experiment Station, 1910. 



192 



MAJSTAGEMENT OF DAIRY PLANTS 



TABLE XV 









Increase in 








Fat, 


Av. 


composite 


Pounds fat 


Creamery 


Place of storage 


per 


single 


test, 


paid too 


lost, 




cent 


test 


per cent 


much 


dollars 


Ice Box 












Tight seal 


39-5 




none 


none 


none 


Loose seal 


40 -5 




1 .0 


506 


126.50 


Open bottle 


430 




3-5 


1,772 


443 • 00 


Receiving Platform 




30 . 5 








Tight seal 


43 -o 




3-S 


1,772 


443.00 


Loose seal 


44 • 




4-5 


2,278 


569-50 


Open bottle 


50.0 




10.5 


5,316 


1,329.00 



4. Improper Method of Reading the Test. — In order to 
comply with the Babcock system of testing the tests should 
be read at a temperature at which the melted butter fat has 
a specific gravity of .9. This temperature varies somewhat 
with the composition of- the butter fat, but is not far from 
120° F., a temperature ranging from 120° F. to 140° F. is 
usually recommended. The Iowa Experiment Station has 
obtained satisfactory results when reading the tests at a tem- 
perature of 130° F. For the purpose of obtaining a definite 
temperature the test bottles should be placed in a water bath 
at 130° F. for about fifteen minutes before the reading is taken. 

In accordance with experiments conducted by Webster 
and Gray ^ the average increase in reading a 39.8 per cent 
cream test when the temperature is raised from 110° F. to 
140° F. is 0.5 per cent (Table XVI). 



1 Bui. No. 58, B. A. I., 1904. 



MECHANICAL LOSSES 



193 



TABLE XVI 
Influence of Temperature on Reading of Test 



Style of bottle 


7^0° to 
130° F. 


130° to 
120° F. 


120° to 
110° F. 


140° to 
110° F. 


30%, 9 inch, 9 gram 

Same doubled 


Per Cent 
0.1 

. 2 
.2 
. 2 


Per Cent 
0.1 

. 2 

. 2 

2 


Per Cent 

0.05 
. I 
.0 
. 2 


Per Cent 

0.25 

•5 
.4 
.6 


50%, 6 inch, 18 gram 

50%, 6 inch, 18 gram 



Babcock recommends that a milk test should be read from 
the top of the meniscus to the bottom of the fat column. D. E. 
Bailey, Iowa Experiment Station ^ found that the Babcock test 
for milk when read from the top of the upper meniscus to the 
bottom of the lower meniscus gave results which were higher 
than those obtained by the gravimetric (Roese-Gottlieb) 
method. On the average of 190 comparisons the difference 
amounted to 0.06 per cent. Webster and Gray 2 recommend 
reading a cream test as follows: 

1. See that line between fat and water is straight, and read 
from bottom to extreme top of fat column. 

2. Read the depth of meniscus and deduct four-fifths of it 
from previous reading. A careful operator can estimate this. 

3. Add 0.2 per cent to the result. 

4. For 9 gram sample, double reading before adding 0.2 
per cent. 

5. Read at a temperature close to 120° F. 

6. If bottles are placed in bath to regulate temperature, 
allow them to stand for fifteen minutes before reading. 

Farrington and Woll ^ recommend that the reading of a cream 
sample be taken from the bottom of the fat column to the bot- 
tom of the meniscus and that the reading be taken at 140° F. 

1 Journal of Dairy Science, Vol. II, No. 5, September, 1919. 

2 Bui. 58, B. A. I., 1904. 

3 Testing Milk and Its Products, 19 10. 



19+ 



MANAGEMENT OF DAIRY PLANTS 



The Indiana Experiment Station ^ suggests that one-third 
of the meniscus be included, and readings taken in this way, 
checked with the gravimetric fat estimation. It further 
recommends that glymol colored with alkanet root be added 
immediately after the last centrifuging. 
Glymol, being lighter than the butter fat, 
will float on top; the meniscus is formed 
from the glymol and the line between the 
fat column and the glymol is straight, so 
the reading can be taken with greater de- 
gree of accuracy. 

Professor C. H. Eckles first conceived the 
idea of leveling the fat column when testing 
cream. He recommended the addition of 
amyl alcohol colored with fuchsinc. As al- 
cohol is a fat solvent, Farrington recom- 
mended the saturation of the alcohol with 
fat before using it. As it is also poisonous 
and the odors therefrom injurious to health, 
glymol should be recommended for labora- 
tory and for commercial work. 

The author has obtained satisfactory re- 
sults when reading the fat column of a 
cream test from d to b (Fig. 25), the reading 
taken at 130° F. It is most satisfactory, 
however, to level the fat column, as that 
overcomes all disagreements in reference to 
the reading. 

It cannot be too strongly emphasized that 
great care should be taken in reading the 
cream test. With the glassware used for 
the Babcock system it is practically impos- 
sible to read closer than to one-fourth of 
one per cent and by being a little careless the test is readily 
overread or underread one per cent. One per cent overreading 
on a 30 per cent cream, from which butter containing 80 per 

' Bui. 14s, Indiana Experiment Station, 1910. 



Fig. 25. — Reading 
a butter-fat test. 



MECHANICAL LOSSES 195 

cent fat is manufactured will reduce the overrun about 4.03 
per cent. 

The total mechanical losses are summarized by Washburn » 
as follows: "The creamery receiving cream lost about 1.4 per 
cent of the total butter fat received during the process of manu- 
facture and saved about 98.6 per cent. The creamery receiv- 
ing milk lost about 3.17 per cent of the butter fat during the 
process of manufacture and saved about 96.83 per cent. 



PER CENT OVERRUN WHICH MAY BE 
LEGALLY OBTAINED 

This is determined primarily by the state and Federal butter 
standards. A moisture standard of 16 per cent and a fat stand- 
ard of 80 per cent may under normal conditions be considered 
identical, as butter containing 16 per cent moisture, 2.8 per 
cent salt, and 1.2 per cent casein also contains 80 per cent of 
butter fat. More casein may be incorporated, but incorpora- 
tion of a high per cent of casein decreases the keeping quahties 
of the butter. A limited number of markets would accept butter 
containing a higher per cent of salt, but the manufacturer 
who makes an attempt to use salt as an adulterant has lost 
all regard for quality and is sacrificing his business when 
he makes such attempt. Salt is added to the butter for 
the sake of aiding it in flavor and not for the sake of 
adulterating it. 

It is evident that under a mere moisture standard the un- 
scrupulous manufacturer might adulterate his butter with 
casein and salt and in that way obtain a high per cent of over- 
run and yet manufacture an article of butter which the law 
would recognize as legal. If the butter standard is based 
on the fat content of the butter then it becomes compara- 
tively easy to estimate a possible theoretical overrun. The 
following calculations are based on an 80 per cent butter-fat 
standard. 

^Bulletin 177, Minnesota Ex. St., 1918. 



196 MANAGEMENT OF DAIRY PLANTS 

A butter containing 80 per cent butter fat should, if no losses 
occur, produce 

(100 — 80) 100 

or 25 per cent overrun. 

80 

Considering that a creamery receives gathered cream con- 
taining 35 per cent of butter fat, from which is manufactured 
butter containing 80 per cent of butter fat, the reduction in 
overrun due to .2 per cent loss in the buttermilk is equal to 
.4 per cent ^ on the overrun. Miscellaneous losses figured at .2 
per cent will reduce the overrun .25 per cent. Considering 
these two losses, we might expect a theoretical legal overrun of 
25 -(-4+ .25) = 24.35 per cent. 

This overrun is higher than could be expected in general 
practice, even though no avoidable loss would occur, as it is 
well known that it is impossible to produce butter which al- 
ways would contain even 80 per cent of butter fat. It is 
furthermore recognized that two or more samples may 
be taken from butter of the same churning, but packed in 
different containers, and even from the same container and 
yet differ in excess of one-half of one per cent in fat content. 
It is therefore only fair to consider that if we have an 80 per 
cent fat standard, the butter, in accordance with our method of 
analysis, should contain about 81 per cent of fat. This will 
reduce the overrun 1.54 per cent, which, subtracted from 24.35 
per cent, leaves an overrun of 22.81 per cent for gathered cream 
butter. If whole milk were received and the loss of butter fat 
in the skim milk amounted to .1 per cent, then the overrun 
would still be decreased to the amount of 2.73 per cent, or the 
overrun would in that case be 20.08 per cent. 

Losses Due to Butter Shrinkage. — In the foregoing discus- 
sion no reference has been made to shrinkage of butter from 
churn to dealer; this shrinkage varies in accordance with 
workmanship of the butter, the time of holding, and the tem- 
perature at which it has been held. A creamery allowing 8 

1 Table XIII. 



MECHANICAL LOSSES I97 

ounces of overweight on 63 pounds of fresh butter containing 
80 per cent of butter fat is losing about one per cent on the 
overrun. Hibbard and Hobson ^ estimate that a tub of butter 
loses two-fifths of a pound of moisture on the way to market. 
Guthrie 2 reports a shrinkage of 0.29 per cent on 100 tubs of 
butter held in cold storage for 134 days at 0° to-io° F. 

1 Bulletin 270, Wisconsin, 1916. 

2 Journal of Dairy Science, Vol. I, No. 2, 1917. 



CHAPTER XVI 

COST OF MANUFACTURING BUTTER 

The items to be considered in determining the cost of manu- 
facturing butter have been discussed in the foregoing chapters, 
and may be briefly summarized as follows: 

Labor, direct and indirect. 

Coal and power. 

Ice and refrigeration. 

Water. 

Butter tubs, boxes, liners, and wrappers. 

Salt, color, washing powder, and miscellaneous supplies. 

Rent. 

Interest on investment. 

Insurance. » 

Taxes. 

Depreciation. 

Repairs. 

It is only by exhaustive study of each factor which adds to the 
manufacturing cost that a manager will be able to reduce such 
cost to the minimum. 

The size of the creamery is one of the primary factors that 
influence the cost of manufacturing. If the receipt of raw 
material is small the cost of manufacturing a pound of butter 
will naturally be high due to fixed expenses which cannot be 
reduced. Wright ^ found that the cost of manufacturing a 
pound of butter in the Iowa creameries was as follows: 

1 i8th Annual Report, 1904, of the Iowa State Dairy Commissioner, 

198 



COST OF MANUFACTURING BUTTER 



199 



Creamery making 40,000 poands 
Creamery making 50,000 pounds 
Creamery making 60,000 pounds 
Creamery making 70,000 pounds 
Creamery making 80,000 pounds 
Creamery making 90,000 pounds to 

125,000 pounds 
Creamery making 150,000 jiounds 
Creamery making 175,000 jjounds 
Creamery making 200,000 pounds 

and above 



cost of making is 4 cents 

cost of making i2 3.4 " 

cost of making is 3.0 " 

cost of making is 2.88 " 

cost of making is 2.66 " 

cost of making is 2.00 '* 

cost of making is 1.85 " 

cost of making is 1.65 " 

cost of making is 1.44 " 



Hibbard and Hobson 1 found the cost of making a pound of 
butter in Wisconsin to be 2.33 cents (Table XVII). Macklin ^ 
found this expense to be somewhat higher for Kansas (Table 
XVIII). 

TABLE XVII 
Who Gets the Money? 



Farmer. . 
Hauling, . 
Creamery 
Railway. . 
Storage. . 
Shrinkage , 
Receiver ] 
Jobber \ 
Broker J 
Packaging, 
Retailer. . . 



Per cent 



67 
4 
6 
2 
o 
o 



2.9 
9.9 



100. o 



These expenses from the Iowa report appear to be rather low 
and it is Hkely that some of the expenses, perhaps such as in- 



Bulletln 270, Wisconsin, iqi6. 



2 Bulletin 217, Kansas, 1Q17. 



200 



MANAGEMENT OF DAIRY PLANTS 



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COST OF MANUFACTURING BUTTER 20I 

surance, interest, and depreciation, were, at least in part, left 
out of consideration. In accordance with estimate No. i, 
page 3, of this book, the cost per pound of butter for manufac- 
turing in a creamery manufacturing 67,200 pounds annually 
amounts to 4.70 cents. For creamery No. 2, manufacturing 
134,000 pounds of butter annually, the cost of manufacturing 
is reduced to 3.08 cents per pound of butter. It is difficult 
even in the best managed creameries to reduce the average 
cost of manufacturing to less than from 2 to 3 cents per pound 
if all expenses are accounted for. During the summer season 
the cost of manufacturing will naturally be comparatively low, 
but in the small creamery it will increase nearly in proportion 
to the decrease in output. The larger plants are able to manu- 
facture butter at a low cost during the summer season, but 
it is equally true that some of the large plants are operating 
under so heavy expense during the winter season that in reahty 
their advantage in the cost of manufacturing becomes insignif- 
icant. Such conditions, however, when they occur are due to 
lack of management. 

The cost of manufacturing could often be reduced by re- 
ducing the general expenses, as are enumerated above. 

Labor usually constitutes the big item of expense. It is not 
possible to make a statement as to what the cost of labor per 
pound of butter should be. This cost depends primarily on the 
size of the creamery. It is possible to increase the cost of labor 
per pound of butter materially and at the same time greatly 
increase the general profits to the creamery. It never pays to 
engage a cheap man as butter maker, for although by so doing 
the cost per pound of butter manufactured will be reduced, the 
general profits will usually be reduced because the man who is 
willing to work cheaply is a man without experience or without 
even ordinary ability. Labor and how the cost thereof may be 
reduced are discussed in Chapter VII. 

For the purpose of guarding against unnecessary expenses 
it is advisable that a daily cost record be kept (Form XVII). 
Such a record contains information that is most essential to 
the manager. 





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202 



CHAPTER XVII 

PROFITS OBTAINED FROM THE MANUFACTURE OF 

ICE CREAM 

The general factors influencing the profits obtained from the 
manufacture of ice cream may be enumerated under the heads 
of A, cost of material; B, yield of ice cream obtained; and C, 
general expenses. 

A. COST OF MATERIAL 

That the cost of material used for the manufacture of ice 
cream is a factor of importance is illustrated by the following 
formulas. Each formula represents the amount of material 
required for manufacturing ten gallons of ice cream. For the 
one formula a high-grade material is used, while for the other 
a material of lower quality is used. 

P'ORMULA No. I ^ 

42 lbs. 20 per cent cream at 50 cents per lb. butter fat $4.20 

8 lbs. sugar at 6 cents 4° 

4 oz. vanilla at $8.00 per gallon 25 

4 oz. gelatin at 45 cents per pound -^^ 

Total cost of material $5-o4 

Cost of material for one gallon ice cream 504 

Formula No. 2 

44 lbs. 16 per cent process cream at 40 cents per lb. butter fat $2.81 

8 lbs. sugar at 6 cents 48 

4 oz. vanilla at $3.00 per gal °9 

4 oz. gelatin at 15 cents per pound °4 

I oz. gum tragacanth — I 

Total cost of material $3-48 

Cost of material for one gallon ice cream 348 

Figures are based on prewar conditions. 



203 



204 MANAGEMENT OF DAIRY PLANTS 

It will be noted from the foregoing formulas that the dif- 
ference in the cost of the cream made a difference of 15.6 cents 
per gallon of the finished product. The difference in cost of 
vanilla made a difference of 1.6 cents per gallon of ice cream. 
The cost of gelatin does not affect the final cost to a great ex- 
tent, as it is comparatively cheap, and if the cheaper grades are 
used it will require greater quantities in order to accomplish 
the same result. 

I. Cream. — The cream is the most important ingredient 
of ice cream. By reducing the richness of cream from 20 to 
19 per cent in formula No. i, the cost of the ice cream was 
reduced 2.1 cents per gallon. The reduction would in reality 
be a trifle less, as a decrease in fat content of the original cream 
would slightly decrease the yield of ice cream. It is evident that 
the uniformity of the fat content of the original cream is essen- 
tial not merely for the purpose of producing an ice cream of 
uniform quahty, but also for the purpose of controlling the cost 
of the finished product. 

The richness of the cream should be determined by testing it 
for butter fat and if not of proper richness it should be standard- 
ized. It is often taken for granted that cream skimmed with 
the same centrifugal separator is of uniform richness and that 
testing and standardizing of such cream is unnecessary. This 
does not coincide with modern teaching, as it has been found 
that cream produced by the same separator may readily vary as 
much as 5 per cent in fat content fron one skimming to another, 
even though the cream screw may be left unchanged. 

I . Standardization of Cream. — By standardization of cream 
the manufacturer is not merely controlling the cost of cream 
required, but is furthermore in a position to manufacture a 
uniform product which is essential to the successful marketing 
thereof. 

A. Reducing the Richness of Cream with Skim Milk. — In 
that instance the cream to be standardized contains the entire 
amount of fat which the standardized cream will contain. 
Therefore the number of pounds of original cream multipHed by 
the number representing the test of same divided by the num- 



PROFITS FROM MANUFACTURE OF ICE CREAM 205 

ber representing the desired richness gives the amount of 
standardized cream produced. 

Example i: 

Reduce the richness of 80 pounds of 30 per cent cream to 
20 per cent by addition of skim milk. 

80 X 30/20 =120 pounds of 20 per cent cream. 
120 — 80 = 40 pounds of skim milk required. 

When a given amount of standardized cream is desired, using 
skim milk for reducing, then the pounds of original cream used 
are equal to the number representing pounds of standardized 
cream multiplied by the number representing the richness of 
the standardized cream, dividing the product by the figure 
representing the richness of the original cream. 

Example 2: 

Prepare 300 pounds of 20 per cent cream from 30 per cent 
cream and skim milk. 

300 X 20/30 = 200 pounds of 30 per cent cream required. 
300 — 200 = 100 pounds of skim milk required. 

B. Reducing the Richness of Cream with Whole Milk. — The 
following method by Pearson is easy and accurate for deter- 
mining the quantity of milk or thin cream that must be added to 
a rich cream to produce a cream of required richness or fat 
content: 

Draw a square and write at the two left-hand corners the 
percentages of fat in the fluids to be mixed, and in the center 
place the required percentage. At the upper right-hand cor- 
ner put the number which represents the difference between 
the two numbers standing in line with it, i. e., the number in 
the center and the one at the lower left-hand corner. At the 
lower right-hand corner put the number that represents the 
difference between the two numbers in line with it. Now let 
the upper right-hand number refer to the upper left and the 
lower right-hand to the lower left, then the two right-hand 
numbers show the relative quantities of the fluids represented 
at the left-hand corners that must be combined to give a fluid 
of the desired standard which is represented in the center. 



2o6 



MANAGEMENT OF DAIRY PLANTS 



Example 3: 

Prepare 260 pounds of cream containing 25 per cent fat from 
4 per cent milk and 30 per cent cream. 

30 21 parts of 30 per cent 

cream 




5 parts of 4 per cent 
milk 



21 



260 X — =210 pounds of 30 per cent cream required. 
26 

260 X — = 50 pounds of 4 per cent milk required. 
26 

Example 4: 

Prepare 25 per cent cream from 231 pounds of 35 per cent 
cream and 4 per cent milk. 

35 21 parts of 35 per cent 

cream 




10 parts of 4 per cent 
milk 



31 



231 X — = 341 pounds of 25 per cent cream. 
21 

341 — 231 = no pounds of 4 per cent milk required or 341 X 



10 



— =110 pounds of 4 per cent milk required. 
31 



PROFITS FROM MANUFACTURE OF ICE CREAM 207 

The following method by the author ^ is also easy and quick 
for the operator to use: 

Let Ci represent amount of original cream. 
C2 represent amount of standardized cream. 
M represent amount of milk. 
t represent test of milk, 
ti represent test of original cream. 
t2 represent test of standardized cream. 
^ If the value of Ci is given, but the value of C2 is unknown, 
then 

C2Xt2 = CiXti+ (C2-Ci)tor 

C2 = Ci X ^ 

t2 — t 

This may be expressed as follows: "When a definite amount 
of original cream is to be standardized with milk of known rich- 
ness then the amount of standardized cream is equal to the 
figure representing pounds of original cream used multiplied by 
figure representing the difference between test of original cream 
and test of milk, this product divided by figure representing 
the difference between test of standardized cream and test of 
milk." 

Example 5: 

Prepare 20 per cent cream from 100 pounds of 30 per cent 
cream and 4 per cent milk. 

C2 = 100 X = 162 1/2 pounds of 20 per cent cream 

20 — 4 

162 1/2 — 100 =62 1/2 pounds of 4 per cent milk to be used 
for standardizing. 

If the value of C2 is given the value of Ci unknown, then 
from the same equation we have the following: 

to — t 
Ci = C2 X f^ 

ti— ' t 

This may be expressed as follows: ''When a definite amount 
of standardized cream is desired then the amount of original 

> Creamery Journal, June i, 1911. 



2o8 MANAGEMENT OF DAIRY PLANTS 

eream required is equal to figure representing the pounds of 
standardized cream multiplied by figure representing the differ- 
ence between test of standardized and test of milk, this product 
to be divided by figure representing the difference between test 
of original cream and test of milk. 

Example 6: 

Prepare loo pounds of 20 per cent cream from 30 per cent 
cream and 4 per cent milk. 

Ci = 100 X =61 7/13 pounds of 30 per cent cream. 

30-4 
100 — 61 7/13 = 38 6/13 pounds of 4 per cent milk. 

To illustrate the similarity between the two methods suppose 
Example 6 had been figured by the method of Pearson; the 
formula would have been as follows: 

20 — 4 
Ci = 100 X 



(20 — 4)+ (30 — 20) 

Example 5 by that method would be solved as follows: 

r ^ V (20 -4)+ (30 -20) 

C2 = 100 X 

20 — 4 

For the purpose of facilitating the work of the ice cream de- 
partment standardization tables may be used to advantage. 

The same rules and formulas as apply for standardization 
of cream may also be used for standardization of milk. 

2. Homogenization of Cream. — By homogenization cream 
is subjected to energetic mechanical treatment. The Gaulin 
system is the oldest and possibly the best known in the United 
States. 

The cream enters the machine at a high temperature. It 
is forced through fine metal capillary tubes and against a conical 
agate- valve disk at a pressure of from 2,000 pounds to 3,000 
pounds per square inch. The fat globules in cream thus treated 
are broken up to such an extent that they are removed with 
difficulty with a cream separator if the homogenization is 
properly done. 

For butter making this treatment is of no advantage but 



PROFITS FROM MANUFACTURE OF ICE CREAM 209 

of disadvantage, for the reason that homogenized cream cannot 
be churned. 

A. Its Value in Ice Cream Making. — In ice cream making 
this treatment of the cream has the advantages that the cream 
acquires a firmer and smoother body so that a 20 per cent 
homogenized cream will produce an ice cream of a similar 
consistency as ice cream made from a richer cream. Ice cream 
made from homogenized cream possesses better keeping quali- 
ties and will yield more services per gallon than that made 
from cream which has not been so treated. It is furthermore 
entirely free from butter particles which are so readily formed 
in untreated cream during the process of freezing. 

Since the introduction of the homogenizer it has been learned 
that by heating skim milk to a high temperature and then add- 
ing melted butter in definite quantities and homogenizing, it is 
possible to produce a cream which in appearance is identical 
with normal cream. This system has the disadvantages: First, 
that it discourages the production of sweet cream, which 
means much to the dairy states, as it is well known that the 
ice cream manufacturer is recognized to be the principal edu- 
cator for quality; second, it discriminates against the smaller 
ice cream manufacturer, as he cannot afford to install a homog- 
enizer and is therefore compelled to buy more expensive cream ; 
and third, if butter from sour cream is used then it becomes 
nothing less than a renovating process. 

The production of artificial cream in places where dairying 
is not well enough developed should not be discouraged, for if 
the cream has to be shipped a great distance it is more economi- 
cal and fully as sanitary to produce the cream from butter made 
from sweet cream, from a practically sterilized milk powder, and 
from sterilized water. 

B. Cost of Homogenization. — The machine after it has 
been started requires but little attention. One man's time 
while the homogenizer is operated is sufficient. In addition to 
that the main cost is the cost of power and the interest on the 
investment. A homogenizer of sixty gallons' capacity per hour 
requires 3 horse power. By instalUng a larger homogenizer 



2IO MANAGEMENT OF DAIRY PLANTS 

some reduction will be made in the cost of power, as a machine 
of a capacity of 200 gallons per hour only requires 6 horse power. 

3. Storing of Cream. — As the demand for ice cream is gov- 
erned largely by weather conditions and local events, the ice 
cream manufacturer sustains annually much loss on cream, for 
if he has too big a supply on hand under ordinary conditions he 
is usually compelled to sell it to the butter manufacturer at a 
loss. At other times, when the demxand for a short time is above 
normal, it may even be impossible to secure a sufficient supply. 
The storing of cream for from one week to ten days will to a 
great extent eliminate such difficulties. 

A. Preparation of Cream for Storage. — The cream should be 
cared for immediately upon arrival at the factory. If left on 
the creamery floor without attention it will soon become unfit 
for ice cream making. Cream used for the manufacture of 
ice cream should not contain above .2 per cent of acid. It 
should be free from undesirable flavors. If the cream is re- 
ceived during a period of several hours it should be placed in a 
tank of ice water as soon as received, or better, in a cooling vat. 
When the cream has all been collected it is standardized to the 
desired richness and then pasteurized. 

The method of pasteurization most satisfactory for cream 
for ice cream making is that of heating the cream to a temper- 
ature of from 140° to 145° F. and holding it at that temperature 
from twenty to twenty-five minutes. From the pasteurizer the 
cream is cooled to within a few degrees of freezing. It is then 
put away in cans into a brine tank or a cold-storage room 
which is held at a temperature of a few degress below freezing. 
The cream is stirred frequently until it has reached the freezing 
point, when it is left until enough of the cream has frozen to 
form ice on the side of the can to a thickness of from a half to 
one inch. The cans may now be packed in crushed ice or placed 
in a cold-storage room at 32° F. and kept in that condition until 
used. All cream used for ice cream making should be treated 
in this manner and held for not less than twenty-four hours at 
32° F. before used. By so doing the body is improved and the 
3deld increased. 



PROFITS FROM MANUFACTURE OF ICE CREAM 2ll 

The cans containing the cream held for storage should be 
sealed This is done very satisfactorily by placing a parchment 
paper over the top of the can, then placing a tight-fitting cover 
on the can. The parchment paper will fit in between the cover 
and the collar of the can and act as a seal. 

B. Length of Time for Storage. —The length of time that 
cream may be safely stored is not satisfactorily known. The 
cream may retain its fresh flavor for from three to four weeks if 
the cans are properly sterilized and sealed and if the cream is 
kept at a temperature of 32° F. It has been found, however, 
that when the cream has been held over ten days or two weeks 
the bacteria are apt to increase at a high rate.^ It is not known 
what effect this increase will have on the wholesomeness of 
the product. 

II. Flavoring Materials. — 

1. Sugar. — Sugar is one of the important ingredients m ice 
cream. The most common sugar used is fine granulated cane 
sugar. Beet sugar is used by several manufacturers and is sold 
for a fraction of a cent less per pound. There is a difference in 
opinion as to the relative value of the two; however, it is most 
generally considered that the difference is insignificant. 

2. Flavoring Extracts. — Extracts become of much im- 
portance for the reason that vanilla ice cream constitutes from 
75 to 90 per cent of the ice cream manufactured and for vanilla 
ice cream an extract is the only practical flavoring to use. Of 
other extracts used by the ice cream factories, might be men- 
tioned lemon, orange, almond, pistachio, peppermint, rose, etc. 
It is most satisfactory to use berries, fruits, and nuts direct as 
flavoring, and extracts should not be used unless in case of neces- 

A. Vanilla Extract. — Vanilla extract is prepared from the 
fully matured, unripe cured fruit of the perennial climbing vine, 
vanilla planifolia. Several varieties of vanilla beans are on the 
market. The difference in the delicacy of flavor determines the 
difference in value between the various kinds of beans. In 
market value the Mexican bean ranks highest and sells at from 

1 Bulletin 134, Iowa Experiment Station, 191 2. 



212 MANAGEMENT OF DAIRY PLANTS 

$8 to $30 per pound. The Bourbon bean ranks second, selling 
at from $5 to $14 per pound, the South American bean sells at 
from $4 to $6 per pound. The cheapest of the various varieties 
is the Tahiti bean, which sells at from $1.75 to $2.25 per pound.^ 

The flavoring material contained in the vanilla bean is 
slightly soluble in water, but readily soluble in alcohol. For 
that reason a weak alcohol is used for extracting the flavoring 
material from the beans. 

The United States standard defines vanilla extract as being 
the flavoring extract prepared from the vanilla bean, with or 
without sugar or glycerin and contains in 100 c. c. the soluble 
matter from not less than 10 grams of the vanilla bean. 

According to this standard the United States official method 
for manufacturing vanilla extract is as follows: 

"Mix 650 c. c. of alcohol with 350 c. c. of water. Macerate 
100 grams of vanilla beans, which have been previously cut 
into small pieces and bruised in a mortar, in 500 c. c. of the 
mixture for twelve hours; then drain off the liquid and set aside. 
Transfer the vanilla to a mortar, beat it with 200 grams of 
sugar into a uniform powder, then pack it in a percolator and 
pour upon it the reserved liquid. When this has disappeared 
from the surface, continue percolation by gradually pouring on 
sufficient menstruum to make 1,000 c. c. of extract." 

Material cost of preparing one gallon of vanilla in accordance 
with the 'United States official method is as follows, figuring 
that the extract is manufactured from a Mexican vanilla bean 
at $10 per pound: 

650 c. c. alcohol at 70 cents per liter $0.46 

200 grams sugar at 6 cents per pound 0.03 

100 grams vanilla bean 2.21 



Material cost of 1,000 c. c. vanilla extract $2.70 

I gallon = 3,785 c. c. 

Material cost of i gallon = $10.22. 

' Flavoring extracts by R. A. Kuever. 



PROFITS FROM MANUFACTURE OF ICE CREAM 213 

Suppose Tahiti beans at $2 per pound are substituted for the 
Mexican vanilla bean, the material cost of a gallon of vanilla 
extract will then be reduced to $3.53. 

An extract resembling vanilla extract and often sold for 
vanilla extract is manufactured synthetically and its cost of 
production is much less than the cheapest true vanilla extract 
manufactured. Therefore, in purchasing vanilla extract, 
the writing on the label of the bottle should be carefully read 
and at times a sample of the goods might be sent to the State 
Experiment Station for analysis. 

The extract made from the Tahiti bean is of a lighter color 
than that manufactured from other beans and is therefore 
readily distinguished unless artificially colored. 

Although it may appear to be profitable for the ice cream 
manufacturer to manufacture his own vanilla extract, it has 
been found by many who have attempted to do so in a small 
way that they have not been successful in producing an extract 
equal to the commercial product. 

B. Lemon Extract. — Lemon extract, in accordance with 
the United States standard, is the flavoring extract prepared 
from oil of lemon or from lemon peel, or both, and contains not 
less than 5 per cent by volume of oil of lemon. 

Oil of lemon is the volatile oil obtained by expression or 
alcoholic solution from the fresh peel of the lemon, has an opti- 
cal rotation ^ of not less than +60° in a 100 mm. tube and con- 
tains not less than 4 per cent by weight of citral. 

The direction for preparing a tincture of lemon peel is as 
follows : 

500 grams lemon peel from the fresh fruit in thin shavings 
and cut in narrow shreds. 

Alcohol of sufficient quantity to make 1,000 c. c. 

"Macerate the lemon peel in a stoppered, wide-mouthed 
container in a moderately warm place with i ,000 c. c, of alcohol 
during forty-eight hours with frequent agitation; then filter 
through purified cotton, and when the liquor has drained off 



25' C. 



214 MANAGEMENT OF DAIRY PLANTS 

completely gradually pour on enough alcohol to make i,ooo 
c. c. of tincture and filter." 

As noted above, a lemon extract may readily be prepared by 
any manufacturer. The most expensive material used for the 
preparation of a lemon extract is the alcohol, therefore the 
manufacturers of extract often prepare cheap terpeneless ex- 
tracts. It requires at least 80 per cent by volume of alcohol 
for a lemon extract containing 5 per cent of lemon oil. Deodo- 
rized or purified alcohol is to be preferred. 

Lemon is not a popular flavor for ice cream, but is used for 
nearly all water ices and lactos; however, for the manufacture 
of these, we depend mainly on the juices of the fruit. 

Orange extract is prepared in a similar manner as lemon 
extract. 

C. Detection of Artificial Extracts. — The ice cream maker 
is seldom capable of making chemical analyses, but there are a 
few simple tests by which the maker may obtain a fair idea as to 
the purity of some of the more common extracts. 

If normal acetate of lead solution is added to a sample of 
vanilla extract a heavy precipitate is formed if the extract is 
pure. If the extract remains clear, or if only a mere cloudiness 
is formed, it is conclusive evidence that the extract is artificial. 

Lemon and orange extracts are readily tested by placing a 
small sample in a test tube; if by adding an equal amount of 
water a heavy precipitate is formed, then it is an indication 
that the extract is of good quality. The heavier the precipitate 
the better the extract. 

The following method by Mitchell is for determination of oil 
in a lemon or orange extract: ''Transfer by a pipette 20 c. c. of 
the extract to a Babcock milk bottle, add i c. c. of dilute hy- 
drochloric acid (i : i); add 25 to 28 c. c. of water previously 
warmed to 60° C. ; mix, and stand in water at 60° for five min- 
utes; centrifuge for five minutes; fill with warm water to bring 
the oil into the graduated neck of the flask, and repeat the whirl- 
ing for two minutes; stand in water at 60° for a few minutes, and 
read the per cent of oil by volume. Where the oil of lemon is 
present in amounts over 2 per cent, add to the percentage of oil 



PROFITS FROM MANUFACTURE OF ICE CREAM 21$ 

found 0.4 per cent to correct for the oil retained in solution. 
Where less than 2 per cent and more than i per cent is present, 
add 0.3 per cent for correction." 

3. Fruit and Berries. — Most fruits and berries possess dis- 
tinctive flavors which are desirable in the manufacture of ice 
creams and ices. It is very seldom possible to prepare from 
such fruits or berries an extract sufficiently concentrated to be 
of much value when used in small quantities. For that reason 
most fruit extracts obtained on the market are manufactured 
from artificial fruit essences made up of compound ethers so as 
to imitate the various fruit flavors. 

The ice cream manufacturer who is giving due consideration 
to quality does not use imitation extracts but prefers to use the 
pure fruit. This may be used either in the form of fruit juice or 
as crushed fruit, but as fruits and berries are seasonal it be- 
comes necessary to preserve such fruits and berries for which a 
permanent demand has been created. It has been found ^ that 
ordinary methods of sterihzing fruit juices by heat may be 
successfully applied to but a limited number of the special 
fruits, such as the black raspberry, blackberry, black currant, 
sour cherry, and peach. In the case of juices of the straw- 
berry, red raspberry, red currant, pineapple, and the citrus 
fruits as well as apple cider, sterilization by heat causes loss 
in flavor, and where kept after heat sterilization the juices of 
these fruits tend to lose in color or flavor, or both. 

A. Preparation of Strawberries for Storage. — Strawberries 
which are of great importance as flavoring for ice cream may be 
sterilized without injury to color but with marked injury to the 
fresh fruit flavor. A cooked strawberry flavor develops. Straw- 
berries may be prepared for storing as follows: 

A perfectly fresh berry of a fine and pronounced flavor 
should be selected. The berries should be rinsed with cold 
water and mashed through a fine hair sieve. The juice, which 
may be collected in a milk can or an ice cream can, is weighed 
and an equal amount of sugar by weight is added. The mix- 
ture of berry juice and sugar is stirred thoroughly at frequent 

1 Bui. 241, U. S. Dep. of Agriculture, 1915. 



2l6 MANAGEMENT OF DAIRY PLANTS 

intervals while it is left at ordinary room temperature from 
twenty-four to forty-eight hours. The object is to have the 
sugar thoroughly dissolved. When the sugar has thus been 
dissolved the fruit should be cooled, which is most readily done 
by packing the can or cans containing the fruit in crushed ice. 
The fruit should be held thus until it has reached a temperature 
of about 35° F. It is then ready to be packed for storage. It 
may be put into earthen containers or it may be packed in 
larger containers such as barrels. It should not be packed in 
larger containers than can be emptied within two or three 
weeks' time unless good cold storage facilities are available. 

If barrels are used these should be thoroughly cleaned and 
sterilized and then paraffined on the inside. When the barrel 
is full of fruit it is headed up and sealed with paraffin wax. 
It should be held at a temperature of 50° F. or lower, if possi- 
ble. 

The importance of watching the fruit closely while it is being 
stored should not be overlooked. If there is any which shows 
the slightest indication of fermentation it should be used imme- 
diately or sterilized. 

The cost of the fruit prepared in accordance with the fore- 
going direction is as follows, in accordance with results obtained 
by the author: 1 

I crate of strawberries producing 16 lbs. juice, cost $2.00 

16 lbs. sugar at 6 cents 96 

Labor .25 

Total cost for 32 lbs. sirup $3.21 

A fruit sirup thus prepared has a specific gravity of 1.32. The 
weight of one gallon of sirup = 8.35 X 1.32 = 11 pounds. 

32 -^ II = 2.91 gallons prepared from one crate of berries. 
Cost per gallon = 3.21 -^ 2.91 = $1.10. 

The yield of fruit juice obtained in the above experiment was 
80 per cent. Gore 2 obtained yields from strawberries ranging 
from 63 to 88.06 per cent. 

' From experiments conducted igi4. 

2 Bulletin 241, U. S. Department of Agriculture, iqt^. 



PROFITS FROM MANUFACTURE OF ICE CREAM 217 

Berries and fruits of various kinds may be prepared by a 
method similar to that outHned for the preparation of straw- 
berries. 

B. Preparation of Cherries for Storage. — Cherry sirup has 
been prepared most successfully by the author by heating the 
cherries to about 185° F. before crushing. After crushing, the 
juice is kept at 185° F. for thirty minutes, sugar is then 
added in equal proportions, and the sirup is allowed to cool. 
The following gives the cost of cherry sirup in accordance with 
results obtained by the author: 

I bushel of cherries produces 29 lbs. juice, cost $3.00 

29 lbs. sugar at 6 cents 1.74 

Labor 50 



Total cost for 58 lbs. sirup $5.24 

Specific gravity of sirup 1.3. 

58 lbs. sirup = 5.375 gallons. 

Cost per gallon of cherry sirup, 97.5 cents. 

4. Chocolate. — Chocolate and similar flavoring material 
which needs to be prepared before it is added to ice cream 
should always be kept on hand in the form of a sirup. This 
sirup may be prepared when there is less regular work in the 
factory and no time is lost when the ice cream maker is busy. 

A chocolate sirip may be prepared from a simple sirup and 
chocolate or cocoa. The principal difference between chocolate 
and cocoa is that the chocolate contains all of the oil from the 
bean. The cocoa bean contains close to 50 per cent of oil; this 
latter is of no value as a flavor-producing material and it is not 
particularly desirable mixed with cream, which already contains 
a high per cent of fat. Cocoa is the same as chocolate, except 
that part of the oil has been removed from the cocoa bean, and 
cocoa therefore contains less fat and more flavoring material. 
If one and a half pounds of chocolate are used for ten gallons 
of ice cream, the same result will be secured using about one 
pound of cocoa. 



2l8 MANAGEMENT OF DAIRY PLANTS 

A. Chocolate Sirup. — Chocolate sirup is prepared by 
dissolving cocoa or chocolate in simple sirup. The mixture is 
brought to a boil and when the chocolate or cocoa is dissolved 
the sirup is cooled and transferred to sterilized jugs or jars. 
Cocoa may be added to the sirup in the proportion of one pound 
of cocoa to three or four pounds of simple sirup. 

B. Simple Sirup. — Simple sirup is prepared by adding 
twelve pounds of sugar to eight pounds of water. This is 
boiled until it has a specific gravity of about 1.32 at 60° F. 
Such a sirup contains about 66 per cent of sugar. The weight 
of one gallon of simple sirup thus prepared is eleven pounds. 
The cost of such a sirup, figuring sugar at six cents per pound, is 
about forty-four cents per gallon. 

III. Fillers. — Fillers are comparatively cheap, and from 
the standpoint of cost the manager should not be so interested 
as from the standpoint of quality. It was found ^ that by using 
four ounces of a certain kind of gelatin for ten gallons of ice 
cream the bacteria count increased 565,000 germs per c. c. due 
to the organisms contained in the gelatin while a gelatin of 
higher quality was practically sterile. 

B. YIELD OF ICE CREAM 

The amount of ice cream obtained in excess of amount of 
mix used is called the overrun. The overrun may be figured 
from volume or from weight. 

I. Overrun Figured from Volume. — The overrun figured 
from volume is determined by the following formula: 

(Gallons ice cream produced — gallons mix used) 100 

7 — : = per 

gallons of mix used 

cent overrun. 

Example: 

100 pounds of mix, of a specific gravity of 1.07, produces 
20 gallons of ice cream. Figure overrun. 

' Bulletin 134, Iowa Experiment Station, IQ12. 



lOO 



PROFITS FROM MANUFACTURE OF ICE CREAM 2I9 

= 1 1. 19 gallons mix. 

= 78.73 per cent overrun. 



8.35 X 1.07 
(20— 1 1. 19) X 100 



II. 19 

The weight per gallon of the finished ice cream is in this 
instance five pounds. The greater the overrun the lighter the 
finished product will be. It is possible to obtain a considerable 
higher overrun than that indicated in this problem, but if the 
overrun becomes too great the body of the ice cream becomes 
too light and fluffy. The weight of the finished ice cream should 
not be less than five pounds per gallon. 

II. Overrun Figured from Weight. — The overrun may also 
be figured from weight in accordance with the following 
formula: 

(Weight per gal. of mix — weight per gal. of ice cream) loo 

weight per gal. of ice cream 
per cent overrun 

Applying this to problem above we have 

(s.^^x 1.07 — 100 „ ^ 

■^-^^^ = 78.69 per cent overrun. 

The ice cream maker should check his work from time to 
time during the day's run. This is most readily done by weigh- 
ing a container of ice cream, thus determining the weight per 
gallon. 

III. Figuring Overrun from Amount of Mix or Amount 
of Cream Used. — In the above formulas the overrun has been 
calculated from amount of mix. This is very satisfactory when 
the same formula is being used at all times. Some manufac- 
turers prefer to figure the overrun from amount of cream used 
which may be considered to be equally satisfactory. For 
plain ice cream a hundred per cent overrun on amount of cream 
used may usually be considered equal to about eighty per cent 
overrun when figuring from amount of mix used; this, however, 
depends on formula used. 



220 MANAGEMENT OF DAIRY PLANTS 

IV. Factors Influencing Yield of Ice Cream Obtained. — 

The principal factors influencing the yield of ice cream obtained 
are: First, condition and treatment of cream used; second, tem- 
perature of ice cream when drawn from freezer; third, tempera- 
ture of circulating brine; fourth, size of batch frozen; fifth, 
speed of agitator. ^ 

1. Condition and Treatment of Cream Used. — The value of 
aging the cream has been formerly discussed. Rich cream pro- 
duces a higher yield than thinner cream. Cream of a high 
temperature is likely to churn during the freezing process and 
the yield is, as a result thereof, decreased. Homogenized 
cream produces less yield than does cream which has not been 
so treated unless frozen longer than untreated cream. 2 

2. Temperature of Ice Cream When Drawn from Freezer. — 
The temperature at which the ice cream returns the greatest 
yield is usually from 27° F. to 28° F. This, however, may vary 
slightly due to the condition of the cream used. 

3. Temperature of Circulating Brine. — A brine of low tem- 
perature causes the ice cream to freeze before a sufficient 
amount of air has been incorporated. If the brine is too warm 
the freezing takes too long and it may result in partly churning 
the cream. A brine of a temperature from 8° F. to 14° F. is 
most desirable; the lower temperature is most satisfactory for a 
cream of lower viscosity. A cream of higher viscosity, such as 
homogenized cream, should be frozen with a brine of the higher 
temperature so as to allow longer time for the incorporation 
of air. 

4. Size of Batch Frozen. — The larger the batch up to a cer- 
tain limit the greater the yield will be. The smaller batch 
freezes too soon before a sufficient amount of air has been 
incorporated. 

5. Speed of Agitator. — The freezer should be operated very 
slowly until it reaches the point of freezing which varies from 
28° F. to 29° F.3 It should be the object to reach that point 

' Bulletin 180, Iowa Experiment Station, 1918. 

2 Bulletin 180, Iowa Experiment Station, 1918. 

3 Bulletin 155, by Washburn, Vermont Exp. Station, igio. 



PROFITS FROM MANUFACTURE OF ICE CREAM 221 

before the fat globules begin to coalesce, for if not the cream is 
less suitable for whipping. The speed may then be increased to 
advantage. 

V. Losses Which Influence the General Yield. — Losses 
of various kinds are usually found to be more frequent in the ice 
cream factory than in the creamery. It is only by the closest 
attention of the manager to the details of the work in the fac- 
tory that such losses will be reduced to the minimum. The 
most significant of such losses are due: First, to inaccurate ice 
cream molds and containers; second, to molding of hard ice 
cream, and third, to retailing of ice cream. 

1. Ice Cream Molds and Containers.— Th^ ice cream brick 
molds and containers should be tested as to accuracy of size 
before they are placed in service. This is most conveniently 
done by weighing the amount of water which they hold. A 
5-gallon container if of proper size will hold exactly 8.35 X 5 
= 41.75 pounds of water. 

2. Molding of Ice Cream. — The^ molding of ice cream 
should be done directly from the freezer or before the cream has 
been thoroughly hardened; if not, the loss is increased. The 
loss sustained due to molding of hard ice cream may readily 
reduce the quantity of ice cream from 10 to 20 per cent. 

3. Retailing Ice Creow. — The retailing of ice cream will 
always result in a quantity loss. This may be due partly to 
giving the retail customers too big measure or to the trans- 
ferring of hard ice cream from one container to another. If 
ice cream is sold at retail it is most satisfactory to mold it in the 
form of a brick of a quart size direct from the freezer. 

C. GENERAL EXPENSES IN MANUFACTURING 

ICE CREAM 

The general expenses in the manufacture of ice cream are 
much sunilar to the general expenses in the creamery and will 
be discussed here in so far as they differ. 

The cost of material used for ten gallons of vanilla ice cream 
has previously been figured at $5.04. This does not include 



i22 



MANAGEMENT OF lV\lk\ PLANTS 



such other expenses as labor, salt, ice, power, interest, insurance, 
etc. 

FORM XVIII 

Ice Cream Manufacturing Report Showing Cost of Material Used Per Gallon of 

IcK Ckkau M^nufactiireu 



KIND OK 
ICK CKEAXl 


Lbs. 
cream 


Lbs. 
su^ar 


Ozs. 

vanilla 


Lbs. 

Heliiiin 














.1 m'l 

mjd. 


Over- 
run 


Total 
cost 


Cost 

per 

saL 



































































































__ 




































TOTAL 

















I. Cost of Labor. — Some small creameries are so situated 
that they need a helper during the summer season, but on ac- 
count of lack of business there is less than a day's work for each 
of the men. Such a creamery may during the summer season 
manufacture ice cream for its town at praciically no extra ex- 
pense for labor. The amount of labor which is due to be paid 
for the ice cream department should, however, be figured as 
paid from there and the labor transferred to the ice cream 
department should be credited to the butter department. 
Some smaller ice cream plants tind that labor is a big item. 
Some figure the cost of labor for manufacturing as high as lo 
cents per gallon of ice cream manufactured. 

I. The Wholt'SijIe Plant. — The amount and cost of labor 
required in a factory manufacturing boo gallons of ice creiun 
daily may be estimated as follows: 



PROFITS FROM MANUFACTURE OF ICE CREAM 223 

I manager ^ 250.00 

1 ice cream maker, $100 per month 150.0c 

2 helpers at $70 per month 180.00 

I can washer 9o.oo 

I man for handling sweet cream QO-oo 

I bookkeeper i°°-^ 

I order clerk 90.oo 

1 shipping clerk 90-oo 

2 drivers for wholesale at $90 per month 180.00 

Total cost per month 1,220.00 

Total cost per day 40.66 

Cost per gallon manufactured 00.0678 

It is not entirely fair to charge all of the above expenses 
against manufacturing, as part of the manager's and book- 
keeper's salaries and the entire salary of the order clerk and 
drners should be charged against the selling expenses. In a 
factory of the above size the manager will take entire charge of 
selling. Therefore the cost of $0.0678 per gallon should be under- 
stood to be the cost of labor for manufacturing and selling, 
except the traveUng expenses for the solicitor which are not 

included. . , „. 

2. The Retail Plant. — The cost of manufactunng and sellmg 
at retail is greatly increased due to extra cost of labor, cost of 
delivery and bookkeeping, and shrinkage of ice cream. There- 
fore in making the retail prices such factors should be consid- 

II Cost of Power. — The cost of power may be determined 
on the basis that a lo-gallon batch freezer will require about 2 
horse power. An ice crusher will require from 3 to 5 horse 

^"^IIL Cost of Ice and Salt. —The cost of ice and salt for 
freezing, for hardening, repacking in the hardening tank, and 
repacking for shipment amounted to 7 1/2 cents ger gallon for 
the entire year's business in a factory where an average of 500 
gallons were manufactured daily during the summer season. 
The ice was figured at a cost of $3 per ton and the salt at $7 per 



224 MANAGEMENT OF DAIRY PLANTS 

ton. At this particular ice cream factory the hardening tanks 
were kept in a large open room without refrigeration. The 
ice cream was repacked twice daily in the hardening tanks. 
This expense might be reduced materially by keeping the hard- 
ening tanks in a refrigerator room. In one ice cream factory 
where that system of hardening was introduced it was found 
that the ice cream kept in most excellent condition by repack- 
ing only once daily. Some are using brine instead of ice and 
salt for the hardening tanks. This will tend to reduce the cost 
somewhat. The dry hardening rooms are the most sanitary 
and for larger plants the most economical, but for a very small 
plant that system would prove to be rather expensive. It is 
economy to use brine direct from the cold storage system for 
freezing the ice cream wherever such brine is available. 

IV. Cost Due to Loss of Ice Cream Containers and Tubs. 
The loss of ice cream containers and tubs may be a big item 
unless systematic records are kept of outgoing containers. 
The ice cream manufacturer should select some individual 
color or some method of painting his tubs so that they will not 
resemble those of his competitors. By this individuality the 
packers will be generally known and will usually be returned to 
the proper factory. The tubs should furthermore bear the firm 
name and address. They should be numbered so that it may 
be possible to keep record of the individual containers. It is 
convenient to use letters for designating the size of containers. 
A might thus be used for lo-gallon packers, B for 5-gallon 
packers, C for 3-gallon packers, etc. In accordance with that 
system the lo-gallon packers would be numbered Ai, A2, A3, 
etc.; 5-gallon packers would be numbered Bi, B2, B3, etc. 

When a shipment of ice cream is sent out a tag should be 
attached to the tub bearing the name and address of the cus- 
tomer (Form XIX). 

Part of this tag bearing the name and address of the customer, 
the number of packer, and the date shipped is torn off from the 
original tag and filed on a board, properly numbered. When- 
ever the containers are returned the original tags are com- 
pared with corresponding stubs and destroyed. Some manu- 



PROFITS FROM MANUFACTURE OF ICE CREAM 



225 



facturers have a special ledger for keeping records of outgoing 
and incoming containers, but that method requires more labor 
and is less satisfactory. If proper records are kept of the con- 
tainers, then it may be safely estimated that the containers and 
tubs, if of good quality, will serve for three years or more. 



FORM XIX 
Ice Cream Shipping Tag 



Name 



DAIRY DEPARTMENT I. S. C. 



^^^^IMcr^ 



Kind Of Cream 
Amount . 






A 




Please Leave This Tag On Packer 

^.m.C^ /sz .,- 



Date 
Plione 



ffo. 39031 



CHAPTER XVIII 

MARKETING OF DAIRY PRODUCTS 

A. SALESMANSHIP 

The selling of goods may be defined as an exchange of values; 
the act of selling is known as a business transaction. In order 
that a business transaction may lead to a permanent business 
relationship the transaction should be of mutual benefit to the 
parties concerned. The one who buys the goods must feel 
satisfied that he obtained as good value for his money as could 
be obtained anywhere. The one who sells the goods should 
likewise be satisfied with the transaction. If either of the two 
parties attempts to take advantage of the other the result will be 
that business relationship between the two will sooner or later 
be discontinued. 

I. The Salesman. — The one who sells goods is known as the 
salesman. The art of selling goods becomes more important as 
competition becomes stronger and as business becomes more 
centralized. The salesman of to-day is therefore a man who 
must meet many requirements. 

I. He Should he Honest, he of Good Moral Character, aiid of a 
Strong hut Pleasing Personality. — He should cultivate taste 
for good company, for a man's character is often judged by that 
of his associates, and the modern business man is won most 
readily by that salesman who is of a strong character and per- 
sonality. After he has won the confidence of the buyer a sales- 
man is often tempted to sell a bigger order of goods than would 
be profitable for the purchaser to buy, but the salesman should 
look after the interest of his customers the same as he is looking 
after the interest of the firm by which he is employed. When- 
ever necessary he will make suggestions in reference to the size 
of orders which can be handled to best advantage by the pur- 

226 



MARKETING OF DAIRY PRODUCTS 227 

chaser. He should present the goods just as they are, not 
making any statements without authority from his house or 
statements which his firm is unable to back up. 

2 He Should Cultivate Acquaintance with His Customers 
and Always he Glad to See Them. — A salesman who is afraid of 
meeting his customers after he has called on them a few times 
does not understand the secret of gaining their friendship. 
Such friendship can be gained only by salesmen who are in 
sympathy with, and have respect for, the people with whom 
they are deahng. The salesman should therefore be ready to 
observe the good qualities of his customer but slow in observing 
the quahties less desirable. A salesman's opportunity to be of 
help to his customers should be considered as a privilege, as it 
will result in mutual friendship, which is the strongest asset a 
salesman can possess. 

3 He Should Know the Goods He Sells and Have Confidence 
in the House He Represents. — The man who sells a dairy prod- 
uct should know how such a product is manufactured, and it 
he is without technical knowledge then he should first work for 
some time in a dairy establishment. Even though he may have 
a fair technical knowledge he should spend a few days m the 
factory which manufactures the goods he is to sell. It is just 
as essential for a salesman to be in possession of such knowledge 
as it is for the attorney who is to conduct a case based on tech- 
nical principles. 

It is not merely the general principles of manufacturing, 
common to all establishments making the same line of goods, 
that should be studied, but especially such phases of the work 
in which the factory he represents excels the others. Particu- 
lar attention should be given to sanitation, quality of raw 
material used, scientific principles involved in manufacturing, 
and quality and appearance of the finished product. 

Experience thus obtained enables the representative to pre- 
sent properly the merits of the goods he sells. It also gives him 
enthusiasm and confidence in his firm. It is a difficult taskfor 
any one to sell an unknown product even at an average price; 
it is comparatively easy to sell a product at an advance m price 



228 MANAGEMENT OF DAIRY PLANTS 

if the salesman is fully aware of the superiority of that product. 
The fact that the factory is so equipped with machinery and 
supplied with raw material that it can meet the demand at all 
times of the year is also a big factor in developing confidence on 
the part of the one who sells the goods. 

4. He Should Familiarize Himself with the Quality of Goods 
Sold by His Competitors and with Their Methods of Selling. — • 
This is entirely for the purpose of self-education and not for 
the direct purpose of taking undue advantage of such knowl- 
edge. A salesman should hold his competitors in high esteem. 
He should never speak of them when he sells goods, for if he 
does it is an indication that he is afraid of them and it makes 
him weaker in the eyes of the prospective customer. 

5. He Should Have Self -Confidence. — The one who lacks 
self-confidence will never be able to talk convincingly. Self- 
confidence should not be confused with self-conceit, for that is a 
very undesirable quality to possess. 

6. He Should be a Judge of Human Nature. — The people he 
is to deal with are of different temperaments. They have 
different ideas, they do business in a different manner. It is 
therefore essential that the salesman first study the individual- 
ity of the person he expects to approach. The nature and the 
volume of his business have much to do in shaping the business 
man. The man who conducts a large retail grocery business in 
a large city is a busier man and requires different approach 
than the one conducting a grocery business in a small town. 

Before approaching a person the salesman should have made 
a fair analysis of him and of his business. The approach is a 
very important part of the salesman's work. His manner of 
approach creates in the prospective buyer a like or a dislike, 
and unless he is able to make a favorable impression his chances 
for interesting the prospect are very poor. In order to appeal 
favorably he should be polite; he should not inconvenience the 
one he expects to do business with, but if he finds that he is 
busy it would possibly be advisable to call later. A salesman is 
at a disadvantage when trying to interest a person who for the 
time being has urgent business to attend to. , The salesman in 



MARKETING OF DAIKY PRODUCTS 229 

presenting his selling talk should be brief but convincing. He 
should watcli the one he is talking to in order to observe the 
interest he takes in his arguments. He will thus be able to de- 
termine which points he needs to dwell upon and which he 
should pass lightly over. The financial interest of the mer- 
chant should always be kept in the background for a selhng 
talk for if it is not apparent to the merchant that he wil gam 
something by handling that brand of goods then it is unlikely 
that he will become interested. The salesman should know 
when to talk and when to let the other person talk Some 
buyers prefer to do most of the talking themselves while others 
will quietly listen to the arguments of the one who has the 
goods to sell. He should also know when it is the proper time 

to withdraw. . (^;^ 

7 He Should be Persistent. — Because a few attempts tail 
that should not cause discouragement, but should call for re- 
newed energy. He should take advantage of each failure as 
well as of each success by reviewing each selhng talk, singling 
out the mistakes as well as the strong points of the talk A 
permanent record should be kept of such analysis; a card file or 
a loose-leaf book is convenient for such information. A card or 
a leaf for each customer may be filed with information about 
former impressions, former conversations, and other facts ot 
value. Such a report should be fully studied before calmg on 
the person later. Such information is most conveniently filed 
geographically and alphabetically. 

The salesman should furthermore keep a permanent daily 
record of the number of calls made, number of selling talks, and 
number of sales made. This should be summarized monthly. 
The purpose of this is for increased efficiency. 

II The Manager in His Relation to the Salesman. — 
I 'He Should be Able to Impart Enthusiasm to the Salesman 
— This cannot be accomplished unless the manager himseit 
has enthusiasm. Before the salesman starts to work the 
manager should take charge of him for the purpose of stirring 
his enthusiasm to the greatest extent. A manager should never 
send out a salesman before that has been done, for without 



230 MANAGEMENT OF DAIRY PLANTS 

enthusiasm the salesman will fail to present a forceful selling 
talk. 

2. He Should Stand Back of His Salesman. — The quality 
of goods delivered should be the same as that represented by 
the salesman and it should be uniform and remain so. The 
practice of starting a new customer, supplying him with fancy 
goods for a short time, and then gradually reducing the quality, 
should be discouraged. A manager of such ideals cannot expect 
his salesmen to continue to retain business or remain enthu- 
siastic or to maintain loyalty and respect for his firm, all of which 
are necessary for success. 

A creamery is at times during the winter season short of 
butter for its regular customers. If it is marketing its butter 
under a certain brand which has been advertised in a way to 
lead the consumer or dealer to think that butter sold under 
that brand is manufactured by the creamery, then it would be 
inconsistent and unfair to the purchaser for that creamery to 
buy butter from other factories and sell it under its own brand. 
Such a procedure would make the purchaser feel that he had 
not been fairly treated, and it would furthermore lower the 
value of a trade-mark which had perhaps cost much to adver- 
tise and establish. When such a shortage occurs it would 
be more satisfactory if the creamery had a second established 
brand to be used more or less during the entire season. This 
brand of butter would be sold to merchants with the dis- 
tinct understanding that some of it or perhaps all of it is not 
manufactured in the home institution. By being careful about 
the quality of such goods and by properly advertising same, 
the merchants may be willing to sell the two brands during the 
winter season. The disadvantages of that system will be more 
than overcome by the consequent assurance which the pur- 
chaser will have of the manufacturer's honesty. 

It is usually understood between the salesman and the buyer 
what size and kind of package is to be used as well as what 
time the shipment is to be made. Is is of greatest importance 
that such agreements are complied with, inasmuch as dairy 
products are perishable and must be kept under refrigera- 



MARKETING OF DAIRY PRODUCTS 23 1 

tion. The dealer always prefers a package of such size as will 
be most convenient for the refrigerator, and as he prefers to 
handle fresh goods he will naturally expect the goods to arrive 
at definite times. 

The invoice, together with the bill of lading, should also be 
sent by the first mail leaving after the shipment has been made. 
Some factories put the invoice in an envolope in the package, 
but it is safest and more in accordance with business custom to 
send it through the mail. As butter fluctuates in value it is of 
importance that the dealer receives the invoice so that he may 
know the value of the goods before he sells them. 

3. He Should he in Close Touch with His Salesman and His 
Customers. — He should receive daily reports from his salesman 
and should write him daily. He should always write encour- 
aging letters and not find fault with the salesman, for there is 
nothing which will have a more depressing effect on a salesman 
than an unkind letter from the home office. If the manager 
has no helpful information or some word of encouragement to 
send his salesman, then it is advisable to save the time and 
expense of writing. The manager can well afford to keep in 
close touch with his customers and it should be well worth his 
while to write to them at times, if only for the sake of thanking 
them for their business or perhaps at times advising them 
when the salesman will call. Copies of such letters should be 
forwarded to the salesman. 

B. METHODS OF MARKETING 

The method of marketing should be determined: First, by 
the nature of the business. A market milk plant will naturally 
dispose of its products locally; the same is true to some extent 
if the product to be sold is ice cream. Soft cheese is also a prod- 
uct which is too perishable to be shipped great distances, 
whereas cheese, properly ripened and of a firm body, and butter 
may be shipped to any part of the globe. Second, by the loca- 
tion of the manufacturing establishment. A creamery located 
in the country lacks transportation facilities for marketing m 



232 MANAGEMENT OF DAIRY PLANTS 

smaller quantities and can usually market greater quantities 
to best advantage. A creamery located close to a railway sta- 
tion may be able to market its output in smaller lots to advan- 
tage. Third, by the quantity of finished products to be sold and 
the prices obtained from the various sources. Some small 
creameries have been able to turn their entire output over to 
large dealers, obtaining as much therefore as could be obtained 
through a market of a more local character, and thus saving the 
cost of establishing a special market which would necessitate 
the keeping of additional records and increase losses due to bad 
accounts. Fourth, by the business experience of the manager. 
If he has no experience in marketing, in keeping a systematic 
set of records, or in collecting accounts, then the simplest 
method of selling the product may be the most profitable. 

I. Selling Direct to the Consumer. — This system of market- 
ing is practiced to only a limited extent as it is a more cumber- 
some method of establishing a market; the cost of selling is 
higher and the credit risk becomes greater. Moreover, the 
manufacturer as a rule is a poor retail salesman and lacks the 
connection with the consumers which has been established by a 
regular retail dealer such as the grocer. The retail business 
cannot be eliminated entirely. The milk and cream patrons 
deliver the raw product at the creamery and often take butter, 
cheese, or ice cream as part payment. In some towns it may 
seem advisable to cater more or less to retail customers, espe- 
cially if ice cream is manufactured. The market milk plant will 
naturally dispose of the greater amount of its output to the 
consumer direct. 

II. Marketing Through Retail Establishments. — The re- 
tailer is dealing with the consumer direct. It is his business 
to cater to the wants of the consumer and he becomes a special- 
ist along that line. A retailer, such as the grocer, handles 
numerous lines of goods and will usually make deliveries to the 
consumers at frequent intervals. He will therefore be able to 
sell at retail and deliver such products as butter and cheese at 
less cost than can the factory operator. Ice cream, due to its 
perishability, is usually marketed from the factory direct to the 



MARKETING OF DAIRY PRODUCTS 233 

consumer but at a high marketing cost. Milk and sweet cream 
are delivered from the central milk plant to the consumer at a 
reasonable cost as they are delivered to regular customers at 
regular intervals, and routes for economic distribution of such 
products are readily established. 

I. Selling to Local Retailers. — The local market claims 
several advantages: First, it saves in transportation expenses 
and thereby either reduces the cost to the consumers or in- 
creases the profits of the local dealers. Second, it educates the 
people to demand a product of higher quality, as a perishable 
product usually appeals most favorably to our sense of taste 
while it is fresh, and often creamery butter sold in a town will 
take the place of farm butter which is commonly of inferior 
quality. Third, the consumers' demand for better quality re- 
sults in no call for the poorer grades of farm butter. The cream 
which was formerly converted into farm butter will be sold 
to the creamery, giving the farmer a more satisfactory return 
and enabling the creamery to reduce its operating expenses per 
pound of butter manufactured. Fourth, it is of advertising 
value to the creamery to have its products sold by all local 

dealers. 

If the creamery is located in a city it is often most satis- 
factory to establish regular routes and have a wagon call and 
deliver goods to retail dealers at regular intervals. Such a sys- 
tem is very satisfactory when handling butter and cheese. The 
same wagon might also deliver eggs if they are handled by the 
firm. This wagon driver becomes a salesman for his firm, and 
soliciting of new trade and keeping customers pleased are, to a 
certain extent, left to him. The manager should always keep 
himself posted on the condition of the business on each route. 
It is convenient for him to have a map of the city in his office on 
which the routes are shown. All dealers may be indicated on 
the map by colored pins or pegs. Prospective customers may 
be indicated by black pegs, active customers by white-colored 
pegs, etc. It may be advisable also to have colors indicatmg 
the nature of the business of the retailer so as to know whether 
he operates a grocery, a confectionery, or a drug store. After 



234 MANAGEMENT OF DAIRY PLANTS 

the driver has completed his day's work and returns to the 
creamery he should report to the manager and consult with 
him in reference to the business for the following day. 

The drivers may be employed under different agreements. 
Some are employed as day laborers, but it is perhaps most com- 
mon to employ them at a small monthly salary with an addi- 
tional premium based on their sales. The cost of selling butter 
and cheese by this system can be estimated at from a half cent 
to one cent per pound, including both salary of driver and cost 
of maintaining delivery outfit and paying depreciation and 
interest on the investment. 

Cream, milk, and ice cream are disposed of differently. Reg- 
ular delivery routes are established for the delivery of milk and 
cream if sold at retail. The driver may or may not act as a 
solicitor. Some prefer to send an experienced salesman out 
from the office for the purpose of soliciting and organizing the 
routes and the driver is then merely delivering the products in 
accordance with his route list prepared for him. 

2. Selling to Retailers More Distantly Located. — A campaign 
for such sales may be carried on in two different ways. First, 
the salesman may solicit all or part of the merchants in a cer- 
tain town, and second, the salesman may select only one mer- 
chant out of a number, and offer him exclusive agency for the 
goods. The first method is most satisfactory in the home town, 
where it is comparatively easy and inexpensive to keep in touch 
with the various dealers. It is far more difficult and more 
expensive to keep in touch with the dealers in more distant 
towns, and for that reason the second method may there have 
some advantages. 

The principal advantages in giving a merchant in an outside 
town exclusive agency are: First, the buyer takes greater in- 
terest in handling the goods. It will be to his advantage to 
handle a line not handled by his competitor if the goods are of 
high quality. It will therefore be easier to secure a customer 
under such conditions and he will remain more loyal to the 
company. Second, the retailer will be willing to advertise the 
goods and the manufacturer thus saves that expense. It will be 



MARKETING OF DAIRY PRODUCTS 2^S 

the object of the retailer to increase the sale of such goods to 
the fullest extent, as he considers that he is advertising his own 
goods when advertising a line on which he holds exclusive 

agency. 

The disadvantage of this system is that one merchant m a 
town will not sell as much as would be sold if several were 
handling a line. If the sentiment among several dealers is 
favorable to handhng a particular line of goods then the ex- 
clusive agency plan will not be the most desirable. It is seldom 
advisable to give exclusive agency to only one merchant ma 
large city, because it is usually possible to select dealers in 
different parts of the city so located that one does not interfere 
with the business of the other. 

III. Marketing Through the Commission and Wholesale 

House. — . 1, ^ 

I. The Commission Merchant.— The commission merchant 
does not buy goods from the manufacturer, but receives them on 
consignment and acts as an agent for the manufacturer and 
charges a fixed per cent for his commission. The usual rate of 
commission charged for selling butter is 5 per cent of the selling 
price. The commission merchant sells to the retailer direct, 
but also to the wholesaler. The commission merchant serves 
mostly the smaller manufacturers, and this system of marketing 
butter and cheese has been rather generally adopted. The sys- 
tem has not proven entirely satisfactory, however, as it has often 
led to misunderstanding between the manufacturer and the 
dealer. Therefore many dealers are now buying the products 
outright from the manufacturers and they thus become wholesale 

buyers. 

2. The Broker. — The broker is a dealer who, like the com- 
mission merchant, does not purchase the goods which he 
handles. He usually represents the purchaser, although he 
often represents the seller. He has no warehouse and as a rule 
maintains only an ofhce. He sells mostly in car lots and usually 
direct to the jobbers or wholesalers. 

3. The Wholesale Dealer or Jobber.— The wholesaler buys 
the goods outright from the manufacturer, commission mer- 



236 MANAGEMENT OF DAIRY PLANTS 

chant, or broker and sells to the retailer. As already stated, the 
creameries and cheese factories sell more of their products out- 
right at wholesale than on consignment. 

IV. Marketing Through a Cooperative Selling Agency. — 
A cooperative selling agency may be organized by manufacturers 
for the purpose of marketing their own products. The cost of 
operating the agency is borne by all its members in proportion 
to the amount of money obtained for goods sold through the 
association. Several cooperative selling agencies have been 
organized in the United States for the marketing of cheese, and 
in Europe many associations have also been organized for the 
marketing of butter. This has not, up to the present time, been 
regarded with favor in the United States, although Minnesota 
reports some work along that line. 

Theoretically the cooperative selling agency should be en- 
couraged, for it reduces the number of middlemen. The first 
difficulty that such organizations experience is lack of capital and 
for that reason the patrons of the creamery become discouraged, 
as their money is not forthcoming as soon as expected. This 
delay may be further increased, because the agency, when 
starting, has not as ready an outlet for its goods as the older 
and better established firms; therefore the new agency is 
often compelled to allow butter to accumulate in the warehouse. 
Such conditions will prevail until it is able to establish a satis- 
factory outlet for its goods; for that reason such an institution 
may not always, during the early part of its existence, be in a 
position to return a satisfactory price to the manufacturers. 

The success of the cooperative selling agency depends much 
oh the ability of its manager and directors. As the board of 
directors is elected, it may be criticized as lacking in stabiHty 
when conparing it with an old-established and well-managed 
business concern. If a capable manager were secured with the 
understanding that he would remain permanently if he pro- 
duced results and if the board of directors were also elected with 
the view of efficiency, then a cooperative selling agency should 
be a profitable investment to all interested. 

The cooperative retail milk distributing association is an 



MARKETING OF DAIRY PRODUCTS 237 

organization of milk producers organized for the purpose of 
selling and distributing the milk produced from their own 
herds. This may become a prominent organization in the near 
future. Under the old milk distributing system a number of 
small dealers deliver milk in the same city; frequently several 
of them will deliver through the same streets. Much unnecessary 
time and labor would be saved if the producers or small dealers 
would deliver their milk to a central plant from which it could 
be distributed throughout the city by one set of wagons. This 
system would furthermore have the advantage that the milk 
could be pasteurized before delivery and that an expert in 
charge of such a plant could guard against receiving of milk 
which was not suitable for human consumption. As a result 
the market milk of the city would often be much improved. 

The municipal market milk plant is a plant owned and oper- 
ated by the city for the purpose of buying the milk at whole- 
sale from the producers and selling and distributing same among 
the consumers of the city. This plant has, the same as the for- 
mer, been organized for the purpose of eliminating unnecessary 
expenses. It may be considered to be a valuable institution 
for a city where the producers are not inclined to cooperate. 

C. OFFICE RECORDS 

I. Record of Active, Prospective, and Discontinued Cus- 
tomers. — Records of out-of-town business are most readily 
kept by using a map of the territory and a card file. Differ- 
ently colored pegs or pins may be used to indicate customers 
on the map, the same as outlined for city sales. The card files 
may be divided into active customers, prospective customers, 
and discontinued customers. These may again be subdivided 
geographically according to counties, towns, or any other 
system of division. The geographic divisions may come in 
alphabetical or numerical order, and finally the individuals 
or firms may be filed alphabetically under each geographical 
division. 

For example, if the record of a certain territory is filed 
according to towns, then the main division of the file would 



238 MANAGEMENT OF DAIRY PLANTS 

be arranged with town names coming alphabetically. If Alta 
were the first town coming in the order stated, Boone the sec- 
ond, Colo the third, etc., then the names of the customers 
(active, prospective, or discontinued) would follow alphabet- 
ically after the town index. The territory might conveniently 
be divided into sub-territories known by numbers instead of by 
names. If such a division is adopted then the cards will follow 
in numerical order. 

The card files are kept for the purpose of furnishing brief 
information about correspondence, agreements, or other facts 
to which it is desirable to refer without having to read through 
a mass of correspondence and records. A firm may write a 
circular letter to prospective customers. A notation thereof is 
made on a card; no answer may be received, and a second cir- 
cular letter is written, which is again noted, etc. A notation is 
also made if a reply is obtained. Further reference may be 
made to any particular letter which is of special importance, etc. 
This card, in short, contains a brief summary of what the com- 
pany knows about a certain firm or individual. 

FORM XX 
Report Card on Prospective Customers 

Name Special information 

Address 

Kind of business 

Financial Standing 

Special report 

Circular letter No Date 

Circular letter No Date 

Reply to circular letter 

No Date 

Content 



A letter should be written or preferably a personal call 
should be made immediately after it has been discovered that a 
customer has discontinued to buy goods. The longer two 



MARKETING OF DAIRY PRODUCTS 



239 



firms do business together the more intimate their business 
relationship should be, and it will therefore become more diffi- 
cult to retain the customer the longer he continues in his busi- 
ness relationship with the other firm. 

n. Sales Records. — No goods should be delivered for 
sale from the factory stock room or refrigerator unless a proper 
record is made thereof. An order should be made out before 
the goods are delivered. (Form XXI.) Such an order is usually 
written in the office. It is made out in triplicate and on three 
colors of paper. The original, which may be on white paper, is 
kept in the office. The second sheet may be of pink color and the 
third sheet yellow. Both the second and third sheets are turned 
over to the purchaser, who presents to the stock clerk the 
second slip as his order for the goods. No goods should be 
delivered on the third slip, as this is merely intended as a mem- 
orandum to be kept by the purchaser. If order blanks are 
used they should be numbered consecutively in triplicate by 
the printer, the three constituting a set bearing the same num- 
ber. This is done so that possible errors may more readily be 
found. 



Sold to 

M 


FORM XXI 

Sales Ticket 


• 




Weight 


A rtldcs 


Price 


A mount 




Butter 
Cheese 
Milk 
Cream 








Received the Above 





N. B. If cash is paid at creamery it must be wntten across the face. 












^ 
I 



§ 



^ 



•p 



^ § 



o 



tJ -t; 



m 



(£ 







^ 



^. 



^ 



240 



FORM XXIII 

COUNTRY DEPARTMENT 



STAT E MEN T 2 






'rmJ^y 



oC^}C/yryy^xrrzy, jyic 



yi(::Zy9'ZyG£y 



In Accoi/r?f iv/Y^h 




MANUFACTUF?ERS OF AND DEALERS IN 

BUTTER, EGGS. CHEESE. CREAM. 
BUTTERMILK, ICECREAM. MILK, 

3rowne Sfr and Poc/f/'c Ave. 



3o/onc0 OS per /osf 3fof&rr?en^ 



2^ 



/S 




50 J^. .^AjjilMy @ 30^ 






30 



30' 



/cAMA£y @ 30* 



300 
300 
(300 



0O/6 



241 



242 



MANAGEMENT OF DAIRY PLANTS 



While the purchaser in the home town usually receives the 
sales slip as a memorandum, this is replaced by the common 
form of invoice (Form XXII), when goods are shipped to out- 
of-town customers. Bills (Form XXIII) are mailed to the 
customer monthly or as often as collections are made. 

Patrons buying butter from the creamery are usually fur- 
nished with a special order blank (Form XXIV). This is made 
out by the patron in duplicate unless it is made out with a 
stub which is retained by the patron as a memorandum. One 
is presented to the creamery while the duplicate is retained by 
the patron as a memorandum.. 



No 








.lbs. Butter 
lbs. Cheese 
. Ice Cream 




qts 


Amount, $ . . . 






Date 







FORM XXIV 
Patrons' Sales Ticket 

No Cola, Iowa, ig. 



Farmers' Co-operative Creamery, 
Please deliver to hearer and charge to my account: 



.lbs. Butter 
.lbs. Cheese 
.qts. Ice Cream 



Name of Patron . 
Address 



Commission sales may cause some difficulty to the account- 
ant from the fact that remittance is made later and there is 
usually some shrinkage in weight from the time the butter 
leaves the creamery until it is sold. The price is also likely 
to change. The author has found it most satisfactory to make 
a sale slip for such shipment the same as for butter sold locally, 
figuring actual weight the day of shipping and calculating 
the value on the same basis as that of butter sold to local 
merchants. At the same time this entry is made on the sales 
record, another entry is made in a book ruled similar to 
Form XXV. 



MARKETING OF DAIRY PRODUCTS 

FORM XXV 

Record of Consignments 



243 





Lbs.of 

butter 

shipped 


Value 


Received 

remittance 

for lbs. 

butter 


Amount 
sold for 


Loss 


Gain 


Date 


Lbs. 

butter 


Amount 


Lbs. 

butter 


Amount 








































— . 




















































































Total 



















Entry is made on Form XXV when remittance has been re- 
ceived. This record is of value to the creamery, also, for the 
purpose of checking gain or loss sustained by disposing of the 
butter on a commission basis. 

Goods delivered in the city by drivers should be checked 
out when loaded on to the wagon. The amount returned is 
checked back and returned to stock. The difference between 
the amount taken out and that returned should be accounted 
for by the driver as sales. The driver, who acts as salesman 
records the sale in duplicate on a sales slip (Form XXI). He 
keeps the original while the duplicate is turned over to the 
purchaser. The sales ticket should be signed by the pur- 
chaser if the goods are charged. The word Cash should be 
written across the face of it if the driver receives cash for what 



244 



MANAGEMENT OF DAIRY PLANTS 



he sells. The driver upon his return to the creamery will turn 
in cash, charge sales tickets, or goods to the amount delivered 
to him. 

Milk and cream sold at retail are often sold for tickets, the 
driver carrying a supply of tickets with him. The customers 
may pay cash for such tickets or they may be charged. A 
record is kept in the ofhce of the tickets turned over to the 
driver and he is held responsible for them, and is required to 
return money, tickets, or charge-sales slip with signature of 
the purchaser. 

Ice cream is ordered through the office and delivery made 
in accordance with such order. It facilitates delivery, re- 
duces the cost, and is more satisfactory to the customers if 
deliveries are made at definite times known to the customers. 
A route sheet (Form XXVI) is furnished each driver before 
starting on his route in order that he may avoid making unnec- 
essary drives. This sheet also has blank spaces for signatures 
of the customers. 

FORM XXVI 

Route Sheet 



Name 


Address 


Goods purchased 


Signature of 
purchaser 


A . Jones 


27 Ash St. 


J qt. van. 


A. Jones 


P. Simons 


4th and Clay 


I qt. ice cream- 


P. Simons 


A. Johanson 


203 Burn side 


I gal. chocolate 


A. Johanson 



















J . Smith 



Driver. 



CHAPTER XIX 

COST OF MARKETING DAIRY PRODUCTS 

The principal factors affecting the cost of marketing a 
commodity are, according to Professor L. D. H. Weld,i as 
follows : 

Firsts Perishability, overcome in the case of some com- 
modities by the possibilities of cold storage. 

Second, Shrinkage in transit, storage, preparation for market 
etc. 

Third, Regularity or irregularity of production throughout 
the year. 

Fourth, Possibihty of grading into definite and widely ac- 
cepted market classes or grades. 

Fifth, Volume in which commodity is handled. 

Sixth, The relation between the bulk of a commodity and its 
intrinsic value, on which depends the importance of transporta- 
tion as a factor in the cost of marketing. 

1 The Marketing of Butter. Address before the Marketing Conference, Chicago, 
October 29, 19 14. 



245 



246 



MANAGEMENT OF DAIRY PLANTS 



A. COST OF MARKETING BUTTER 

Creamery butter is generally sold on the markets according 
to quality under the following grades. ^'Higher scoring lots, 
Extras, Extra Firsts, Firsts, and Seconds." A comparison is 
presented in Table XIX ^ of the official creamery-butter grades 
of different wholesale trade organizations. 



TABLE XIX 

Comparison of the Official Creamery Butter Grades of Different 
Wholesale Trade Organizations 



Grade 



Specials. . . , 

Extras 

Extra First . 

Firsts 

Seconds . . . , 
Thirds 



Scores Required for Diferenl Grades 



Boston 



93+ 



87-92 
80-86 
75-85 



Chicago 



93+ 
91-92 

87-91 
80-90 

75-89 



Elgin 



93+ 



New York ^ 



93 + 
92 

88-91 

83-87 
76-82 



Philadel- 
phia 



91 + 
90 

87-89 
80-88 
75-89 



San Fran- 
cisco 



93+ 

^ 90-92 

87-89 

80-89 

70-76 



The plus sign (+) indicates that higher scores are included. 



' U. S. Dep. of Agriculture, Bui. 682, igi8. 

2 At the discretion of a "Butter Committee ' the scores required for various grades 
in the New York market are subject to change. 
» Prime firsts. 



COST OF MARKETING DAIRY PRODUCTS 247 

The price of butter is regulated by supply and demand. 
Butter is marketed on a comparatively small margin. Ac- 
cording to Weld the Minnesota creameries receive a net price 
of about two cents less than the New York quotation. The 
commission of 5 per cent for selling, plus the freight to New 
York, will amount to between two and three cents per pound 
for Minnesota and Iowa creameries. Adding this to the net 
price obtained by the creamery gives the wholesale price of the 
butter in New York which, in this case, means that the Min- 
nesota butter is sold in New York at a fraction of a cent above 
New York quotations. The cost of marketing Kansas butter 
is explained by Macklin,^ (Table XVII) and the cost of mar- 
keting Wisconsin butter is presented by Hibbard and Hobson 
in Table XVII. 

Due to the fact that butter is handled on a small mar- 
gin, it becomes more difficult for the smaller creameries to 
eliminate the middleman or commission merchant. The larger 
creameries most often find it to their advantage to establish 
their own special markets. Some have a special marketing 
department, the butter being turned over to that department 
from the factory at a definite price. The marketing department 
here also stands as the middleman between the factory and the 
retail dealer, and all expenses in connection with selling are 
charged against that department. 

The retail price of butter varies in different cities. The 
charges for handling a pound of butter range from about 
three cents to seven cents. Five cents may be considered 
an average. This is a reasonable margin for handling butter, 
as it has to be held under refrigeration and delivered to the 
consumer. 

The amount paid by retailers and consumers above highest 
New York quotations for Extras is presented by Warber 2 
in Table XX. The same investigator also found that branded 
butter allows a greater margin than butter which is not branded 
(Table XXI). By this is not necessarily understood that 

' Bulletin No. 216, Kansas Experiment Station, 1917. 
•i U. S. Dep. of Agriculture, Bui. 682, 1918. 



248 MANAGEMENT OF DAIRY PLANTS 

branded butter yields a greater profit to the dealer, although 
it is generally considered that it does, but there are additional 
expenses connected with the branding of butter, such as special 
packages, advertising, etc., all of which will naturally increase 
the margin. 



COST OF MARKETING DAIRY PRODUCTS 



249 



TABLE XX 

A Comparison of Prices at which Different Grades of Butter and 
Butter Substitutes were sold in New York, Philadelphia, 
Chicago, St. Paul, and Minneapolis 

[Prices are expressed in margins of differences between highest New York 
quotations for Extras and the prices actually paid by retailers and 
cbnsumersl 





New York 


Philadelphia 


Kind or grade 


Nunibe) 
of lots 

in- 
spected 


Average price 

paid above or 

below N. Y. 

Extras 


Average 
margin 

of 
profit 


Number 
of lots 

in- 
spected 


Average price 

Paid above or 

below N. Y. 

Extras 


Aierage 

margin 

of 




By re- 
tailer 


By con- 
sumer 


By re- 
tailer 


by con- 
sumer 


profit 


Extras 


54 

80 
28 

23 
8 


Cetits 

3.8 
2.6 
1 .0 
15-4 
2.9 


Cents 

Q.I 

6.6 

3-9 

21.9 

6.9 


Cents 

5.2 
4.3 
3.8 
6.5 
4.6 


35 
35 
24 
34 
9 


Cents 

5.4 

3-7 

•4 

14.2 

3.8 


Cents 

II. 2 

8.8 

2.3 

23.6 

9.3 


Cents 

6.6 
6.1 
SO 
6.9 
7.1 


f'irsts 


Seconds 

Special brands .... 
Unclassed 


Totals 


IQ3 


3.6 


8.0 


4.7 


137 


7.2 


11.9 


6.0 


Process 


5 
12 


— 4.4 
— 12.6 


•5 
-6.7 


4-7 
5.8 


4 


—II. 5 


-6.9 




Oleomargarine .... 


6.1 




Chicago 


Minneapolis and St.Paul 


Extras 


14 
159 
107 

24 


1. 1 

•3 

— -5 

— -3 


3.0 
3.9 
1.9 
3-3 


4-5 
35 
3-3 
3.4 


37 

219 

70 

39 


1.3 

— .8 

— 3.2 

— 1.7 


6.4 
4-5 
1.6 
4.4 




Firsts 

Seconds 


5-4 
4.8 


Unclassed 


4.5 
5.4 


Totals 


213 


+ .OS 


30 


3-9 


365 


—1. 14 


4.12 


4.86 


Process 

Oleomargarine. . . . 


4 
56 


— 7.1 
—12.8 






2 
26 


- 6.9 
—14.4 


—1.9 
-8.9 


SO 
5 2 



250 



MANAGEMENT OF DAIRY PLANTS 



TABLE XXI 

Comparison of Quality (Average Score) and Average Retail Price op 
Branded and Unbranded Butter 

[Retail prices expressed in margins between prices paid and local quotations 

for Extras] 



Market 



New York 

Philadelphia 

Chicago 

St. Paul and Minneapolis 



Branded lots 



Number 
of lots 



60 

80 

161 

230 



Average 
score 



91 . 2 
90.8 
89.6 
893 



Price 
margin 



Cents 

II . I 

II. 6 

6.1 

518 



Unbranded lots 



Number 
of lots 



122 
21 

68 
37 



Average 
score 



89.8 
90.7 

88.7 
89.7 



Price 
margin 



Cents 
8.83 
9.02 

4-7 
5.06 



The production of American butter is not uniform in quantity 
during the year, for that reason it becomes necessary to store 
some of the butter that is produced at the time when the 
production is the largest. About three-quarters of the hold- 
ings in the cold storage warehouses are stored during the 
months of June and July. Bell and Franklin ^ (Fig. 26) 
found that the cold storage ware houses contained the most 
butter in September, after which it was reduced until it con- 
tained the least in May. 

It has become possible by storing butter to stabilize the 
prices somewhat, moreover, it provides a supply in the season 
when the production is below the demand. Storing of butter 
will naturally increase the cost of marketing as it involves 
special expenses such as storage charges, interest on the invest- 
ment, insurance, and shrinkage. 



U. S. Dep. of Agriculture, Bui. 709, 1918. 



COST 01' MARKETING DAIRY PRODUCTS 25 1 

COLD STORAGi: HOLniHGS 

F 

CREAMERY BUTTER 



Compiled from the reports of the associated warehouses. 
Based on the average holdings of the years 
1907 to 1916 inclusive. 

p/s- (o-t>,»-»J • • • ♦ « • •Pot* 

'^^^ :>, a --^ tio a, -^ > o c:^^ u ^^^ 
cent ^ t^ ^ ^ CQ05s«»^i^s -a: ceni; 

100 j ■"■ 1 ^^^ 

90 ~|~| 5^ 

BO ■ B ■ B SO 

70 ■ ■ ■■■ 70 

Co ■ B ■ ■ ■ 60 

50 ■[■■■■ 50 

^ ■ ■B ■ ■ ■ B 40 4 

H H H H H H H 

^H ^1 ^H ^B ^H ^1 ^H 

30 ■ ■■.■■ B ■ U 50 

20 — ■■■■BBBB — 20 

10 — M iBBBBBBB B Bj lo 

^■1 ^^H ^^H ^^1 ^^H ^^H ^^1 ^^H ^^B ^^H ^^H ^^1 
■ ■■■■■■■■■■■ 

' M ■ B B i J iii B ■ B ■ B ■ ■ I 



Fig. 26. 



252 



MANAGEMENT OF DAIRY PLANTS 




Fig. 27. — Public weigh-house, Alkmar, Holland, 



COST OF MARKETING DAIRY PRODUCTS 253 

B. COST OF MARKETING CHEESE 

It is thought that the middleman can be traced further back 
in the marketing of cheese than in the marketing of any other 
dairy product. It was through the efforts of the middlemen 
that Holland cheese became a noted food product in all parts 
of the world centuries ago. A Dane, Otto Lemwigh, wrote in 
1 791 1 that in Holland cheese was considered as one of their 
most important products of commerce and that it was being 
sold at fabulous prices in all parts of the world. The public 
weigh-house used for weighing the cheese sold on the market at 
Alkmaar, Holland, was built in 1582. The Alkmaar cheese 
market in Holland is one of the oldest and to-day the most 
important cheese market in that country. It is held weekly 
each Friday forenoon. The cheese is brought in by farmers 
and manufacturers and is spread out on the big market square. 
The cheese dealers appear and the buying begins. The cheese 
is bought mostly by dealers who remove it to their warehouses 
from which it is shipped to all parts of the world. 

The cheese industry in this country has been confined to a 
comparatively small territory. Wisconsin claims at present to 
be manufacturing close to 50 per cent of the total amount 
produced in the United States. 2 In accordance with Taylor, 
Schoenfeld, and Wehrwein ^ there were in 191 2 eight dairy 
boards in Wisconsin. Part of the Wisconsin cheese is offered for 
sale on the board, but the greater portion of the cheese manufac- 
tured in the United States is sold on contracts which are more 
or less binding. Often the dealers find it necessary to keep a 
number of traveling men in the field buying up the cheese from 
the manufacturers, a limited amount of cheese being sold on 
a commission basis. 

Cheese is generally handled by three middlemen and the 
transportation company. The cost of marketing Wisconsin 
cheese is as follows: The dealer charges from 3/4 to i 1/2 cents 

1 Professor Bernhard Boeggild in "Maelkeribruget" i Fremmede Lande, 1897. 

2 Wisconsin Bulletin 251, by Hibbard and Hobson, 1915. 

3 Wisconsin Bulletin 231, 1913- 



254 MANAGEMENT OF DAIRY PLANTS 

per pound, the wholesale grocer from 1/4 to 3 cents and the re- 
tail grocers from 3 to 5 cents per pound, and the transportation 
company obtains from 1/4 to 2 1/2 cents per pound. 

Hibbard and Hobson 2 estimate that the farmer receives about 
half of the money paid by consumers for cheese. The other half 
of the consumers' price is divided among the middlemen, the 
retailer getting about as much as the others. The amount of 
money obtained by the middlemen should not be considered 
entirely as profit. The various operations in the dealers' ware- 
house cannot be carried on for less than 1/4 cent per pound. 
The dealer pays the freight, paraffins the cheese, which costs 
about 1/8 cent per pound, puts it into the car to be shipped, pays 
office expenses, insurance,- interest, etc., and storage if the 
cheese has to be stored, which usually costs 1/8 cent per pound 
for a month or less and from 7,ls to 1/2 cent per pound for three 
months and up to six months. The dealers estimate that they 
should realize on the average 5/8 cent on all the cheese they sell 
(direct and stored) to come out even. 

The expense of storing more or less of the cheese cannot 
be eliminated, as the proportion of cheese made to that sold 
in each month of the year varies greatly. Figs. 28 and 29 ^ illus- 
trate the difference between production and shipments from 
Wisconsin during the year 191 1. This situation necessitates 
the storing of at least part of the cheese manufactured. 

C. COST OF MARKETING ICE CREAM 

Ice cream is usually sold by the manufacturer direct to the 
retailer. The costs of marketing are therefore quite readily 
determined, as the middlemen are practically eliminated. 

I. Cost of Shipping. — The distance for shipping ice cream 
is rather limited because the product is perishable and the cost 
of transportation heavy. A shipping distance of 200 miles may 
well be considered as the limit, for if shipped any greater dis- 
tance the cost and the inconvenience of repacking is involved, 
and the cost of transportation is increased to such an extent 

' Bulletin 231, Wisconsin Experiment Station, 1913. 



WIS. CHEDDAR CHEESE PRODUCTION- 1911. 



I I 



I 









Fig. 28 



M 
ft 

12 
10 



CHEDDAR CHEESE SHIPMENTS FROM WIS.- 1911 



■k 




10- 



-0- 






JAN. FEB. MAR. APR. MAY JUNE JULY AUtt. SEPT. OCT. MOV. DEC. 



Fig. 29 



256 MANAGEMENT OF DAIRY PLANTS 

that it will not be possible to sell it in competition with the ice 
cream produced in factories closer by. 

The following is the rate of charges made by an express 
company on five gallons of ice cream on its lines through the 
state of Iowa in 191 6. To these figures should be added 10 or 
15 cents for the return of the empty container. 

Cents 

Up to 40 miles 40 

From 41 to 50 miles 44 

From 51 to 60 miles 48 

From 61 to 80 miles 52 

From 81 to 90 miles 56 

From 91 to no miles 60 

From III to 1 20 miles 68 

From 121 to 140 miles 72 

From 141 to 150 miles 76 

From 151 to 200 miles 84 

From 201 to 240 miles 92 

II. Cost of City Delivery. — The cost of city delivery is 
governed largely by local conditions. Great losses have been 
sustained by ice cream manufacturers due to an inferior system 
of city deliveries. Often the city is not properly divided among 
the various drivers. At times the clerk who makes out the 
delivery sheet (Form XXVI) is not sufficiently familiar with the 
city so that he can make out the shortest routing. Some con- 
cerns have no definite time for making deliveries, but deliver 
whenever they have an order and thus several wagons from the 
same factory may cover the same territory. 

Manufacturers engaged in the retail ice cream business 
usually confine sales to not less than a quart, and the amount 
ordered is generally delivered by the manufacturer. The cost of 
making each delivery, including the return of the empty con- 
tainer, often amounts to from 10 cents to 15 cents. This ad- 
ditional cost should be added to the price of the first quart, 
as the following scale of prices will illustrate: i quart, 60 cents; 
2 quarts, $1.00; 3 quarts, $1.40; 4 quarts, $1.80. 



COST OF MARKETING DAIRY PRODUCTS 257 

III. Cost of Re-icing. — The system of re-icing ice cream for 
the retail dealers was started by some of the larger manufac- 
turers about 1904. The object was to systematize thoroughly 
the method of delivery. A wagon loaded with ice cream, 
crushed ice, and salt would call at the dealers once or twice 
daily, delivering ice cream and re-icing cream which was still 
on hand at the retailer's store. The arguments in favor of this 
system were, first, the customers would take a larger quantity of 
ice cream at a time, and as a result special deliveries would be 
eliminated; second, it would tend to create greater satisfaction 
among the retail dealers, as they would not have to sustain any 
loss due to melted ice cream, and to them there was no expense 
for re-icing. These advantages were soon lost sight of when 
comparing them with the numerous disadvantages to the 
manufacturer. First, the retail dealers were willing that the 
manufacturers should re-ice their cream, but they also de- 
manded that they furnish them with an ice cream cabinet large 
enough so they could take care of a greater quantity of ice cream 
— the manufacturers complied with their request; second, 
some of the smaller dealers would not take ice cream each time 
when the delivery wagon appeared, but they were always ready 
to have their ice cream re-iced; the manufacturer had to treat 
the small dealer the same as the larger dealers. Third, the cost 
of such a delivery was greatly increased, as it required a heavy- 
team and two men to do the same amount of delivering as was 
formerly done by a light one-horse delivery and one man. 
There are places where re-icing may be done to advantage. 
It has been the general experience, however, that it is a system 
which is better not introduced unless extra charges are made. 
It was found by most who tried it that such a business did not 
return a very satisfactory profit. Some have perhaps correctly 
considered that this system has resulted in discrimination 
against the larger purchasers. This is true, inasmuch as the 
manufacturer operating on this system is often spending on the 
purchaser of smaller quantities the profit which he makes from 
the heavier purchaser. This objection does not hold true, how- 
ever, if the manufacturer charges extra for re-icing. 



258 MANAGEMENT OF DAIRY PLANTS 

IV. Overhead Expenses. — The overhead sales expenses 
differ greatly in the various ice cream plants and it is impos- 
sible to give any figure which would be fair to all. The overhead 
expenses in the ice cream plant should be carefully looked after 
perhaps more so in the ice cream plant than in any other dairy 
establishment. 



D. COST OF MARKETING MILK AND CREAM 

I. Selling Milk and Cream at Retail. — By retail sales is 
understood sales made directly to the consumers. The principal 
factors to consider in determining the selling value of milk are: 

Purchase cost of milk 

Processing and bottling cost 

Distributing cost 

Loss due to shrinkage and waste at the milk plant 

Loss on surplus milk 

Loss on bad accounts 

Office expenses 

Advertising 

Interest on investment 

Depreciation 

Miscellaneous expenses 

The cost of these various items differ greatly in the various 
milk plants. Such differences may be due to greater or less 
ability on the part of the manager, size of the city, size of the 
plant, the relation of investment to size of business, etc. 

I. Purchase Cost of Milk. — By purchase cost of milk is 
understood the cost of milk to the distributor, including the 
transportation cost to the distributing plant. This cost may 
fluctuate with the butter market. Some dealers pay the same 
price during the entire year, while it is perhaps the most com- 
mon practice for the distributor to have a yearly contract with 
the producer whereby the latter obtains a price for the year 
which will change at certain predetermined intervals, so the 
price paid will to some extent conform to the current butter 
market. 



COST OF MARKETING DAIRY PRODUCTS 



259 



2. Processing and Bottling Cost, — This includes cost of put- 
ting the milk in shape for marketing, such as clarifying, pas- 
teurizing, cooling, bottlmg, etc. This cost has been variously 
estimated at from 0.3 cent to i.o cent per quart. 

The labor cost in filling and capping the bottles (Table XXII) 1 
is determined for 107 plants in six cities and shows that 839 
bottles were capped per man per hour; the labor cost per 
hundred bottles being 2.4 cents; varying from 0.9 to 8.0 cent. 



TABLE XXII 
Labor Cost for Filling and Capping Milk Bottles 



City 


No. plants 


Labor costs 


Variation 


No. bottles 
per man 
per hour 


Philadelphia 


25 
3 
8 
16 
32 
23 


Cents 
1.8 
2. 1 
2.2 
2.1 
31 
3-3 


Cents 
0.9 to 5.3 
1.9 to3.3 
1 . 5 to 6 . 3 
1.3 to 6 . 7 
1.9 to 8.0 
i.8to5.5 


1,086 


New York 


964 


Pittsbureh 


937 


Baltimore 


739 


Boston 


725 


Washington 


571 




^ 



The value of most modern and up-to-date machinery as well 
as the most efficient operation of such machinery is illustrated 
by Table XXIII. 2 This table furthermore emphasizes the fact 
that the efficiency of the operators as well as the proper num- 

» MUk plant letter No. 20, Dept. of Agriculture, B. A. I., October, 1915. 

According to figures in Table XXII the average costs in Boston and Washington 
were considerably higher than in the other cities, but in the latter city a larger 
proportion of the smaller and less efficient plants were taken into consideration 
while in the former city 26 of the plants supplying data were capping by hand, 
with an average labor cost of 4-5 cents per 100 bottles, varying from 2.1 cents to 
8 o cents Higher wages were also reported in that city than in some of the others, 
thus making the labor cost high in proportion to the number of bottles filled per 
man per hour. In Philadelphia, New York, and Baltimore a larger proportion of 
the plants considered were using automatic machines than in the other cities. 

2 Milk plant letter No. 20, Dep. of Agriculture, B. A. I. October, 1915. 



26o 



MANAGEMENT OF DAIRY PLANTS 



ber of employees engaged at the work materially influences 
the economic efficiency. 



TABLE XXIII 

Table Showing Time Required for Filling and Capping 



Type of machine 


Bottles filled and 
capped per hour 


Bottles filled and 
capped per man 
per hour 


I. 

2, 
3. 
4. 


Large, automatic machine, filling 
and capping a full case at a time 

Rotary type filler and capper 

Machine filler and capper 


1,933 to 8,622 

1,350 to 2,446 

750 to 7,760 

350 to 5,000 


966 to 2,155 
587 to 1,040 
375 to 1,552 
238 to 1,066 


Hand capping 





3. Distributing Cost. — This includes such items as salary 
of driver and collector, upkeep of horses and wagons, barn ex- 
penses, and overhead expenses connected with distribution. 
This expense has been variously estimated at from 2.0 to 4.0 
cents per quart. 

4. Loss Due to Shrinkage and Waste at the Milk Plant. — The 
Department of Agriculture ^ obtained estimates from 41 dealers 
on such losses. These estimates included all losses in handling 
milk from the time it was shipped and varied from 0.5 to 4 per 
cent and averaged 2.15 per cent of the amount handled by each 
dealer. 

Such losses may be due to leaky cans, inaccuracy in weight or 
measure, careless handling of milk, insufficient draining of cans, 
leaky apparatus, losses at the filler, loss from not removing all 
the milk from the pasteurizer, pipes, pumps, tanks, or other 
apparatus, evaporation and mechanical loss during the process 
of clarification, pasteurization, or other processes. 

5. Loss on Surplus Milk. — As the demand for sweet milk 
and cream is not uniform from day to day, and as there is also 

1 Milk plant letter No. 9, Department of Agriculture, B. A. I., November, 1914. 



COST OF MARKETING DAIRY PRODUCTS 26 1 

slight variation in the daily production of milk, it is evident 
that it is necessary for market milk establishments to handle 
a small amount in excess of what can be disposed of at retail. 
This excess is usually converted into other products, such as 
butter, cream for ice cream making, or cheese. As there is 
a good demand for special makes of soft cheese, this has often 
been made from the surplus milk, and some plants have suc- 
ceeded in entirely eliminating this particular loss. Prominent 
milk dealers of Boston estimate the loss due to surplus milk and 
shrinkage at 0.37 cent per quart. 1 

6. Loss on Bad Accounts. — More accounts are lost when 
dealing with the consumer direct than when selling to a dealer. 
Customers leave and neglect to pay and some accounts are so 
small that it will not pay to collect. To overcome this loss in 
some places tickets are sold on a cash basis. This system has 
succeeded in many instances, but has also some failures to its 
credit. It reduces the bad accounts, but may also have a 
tendency to reduce the number of customers. 

7. Overhead Expenses. — Overhead expenses such as ofhce 
expenses, insurance, depreciation, advertising, etc., differ 
greatly in different plants, due to variation in the cost of plant 
and equipment, office system, efficiency of organization, etc. 

8. Total Cost of Marketing. — The datum available on total 
cost is very limited at this time and it varies greatly in different 
plants. A dairy school conducting a 500-quart milk route 
twelve miles in length in the middle Western states reports the 
cost at 3.51 cents per quart; deliveries were reported not to be 
made more than three houses from the main route. The milk 
was not pasteurized. 

Milk dealers of Boston report the cost of marketing in that 
city as follows: 2 

' Hoard's Dairyman. 

2 Hoard's Dairyman, July iq, 1912. 



262 MANAGEMENT OF DAIRY PLANTS 



Country Expenses 

Per 

quart 
Transportation, labor, ice, cans and stopples, can washing 

and miscellaneous items $ . 0102 

City Expenses 

Pasteurizing, washing, and bottling, glass jars, etc 0103 

Salaries of drivers, helpers, foremen, and salesmen 0127 

Teams expense includes horses, wagons, and harnesses . 0070 

Miscellaneous expense, includes bookkeeping, stationery, 
advertising matter, car fares, telephone calls, and bad 

debts 0038 

Total city expenses $ . 0338 



Total expenses, city and country . 0440 

To this must be added shrinkage and loss in carrying sur- 
plus 0037 

Grand total . 0477 

The average price paid in the country, middle zone, from 

October i, 191 1, to October i, 191 2, is, per quart .0390 



Net cost, per quart milk, delivered to customer, family trade $ . 0867 

Percentages of total cost per quart of wholesale and retail 
from eighty milk distributing plants in Massachusetts are 
presented in Table XXIV by Cance. 1 The actual total expenses 
of milk distribution by the same dealers are presented in Fig. 
30 and Fig. 31. Local conditions greatly influence the cost of 
marketing milk, which is illustrated by Table XXV. This 
table was prepared from information furnished by the United 
States Bureau of Markets of milk prices in various markets of 
the United States for November, 1918. The Bureau report is 
based on reports made to the Bureau of Markets by city health 
officials, milk dealers, and officers of milk producers' associa- 
tions. 

* Bulletin 173, Mass. Experiment Station, 191 7. 



COST OF MARKETING DAIRY PRODUCTS 



263 





264 



MANAGEMENT OF DAIRY PLANTS 



TABLE XXIV 

Percentages of Total Cost per Quart of Wholesale and Retail 
Milk (Eighty Plants), by Size or Character of Business 





/ 


II 


III 


IV 








Under 

500 

quarts 


500- 
1,000 
quarts 


1,001- 
2,000 
quarts 


Over 
2,000 
quarts 


V 

All 
retail 


A vcrage 


Number of es- 














tablishments 


27 


20 


10 


3 


20 




Total cost .... 


So. 0204 


$0.0164 


$0.0182 


si;o.o293 


$0.0293 


$0.0218 


Per cent. . . . 


TOO 


100 


TOO 


100 


100 


100 


Processing ex- 














pense 


$0.0065 


$0 . 0046 


$0 . 0045 


$0.0067 


$0 . 0090 


$0 . 0064 


Per cent. . . . 


31.8 


28.1 


24.7 


26.9 


307 


293 


Delivery ex- 














pense 


$0.0114 


$0 . 0089 


$0.0105 


$0.0135 


$0.0160 


$0.01214 


Per cent. . . . 


55-9 


54-2 


57-7 


54-2 


54.6 


55-7 


Overhead ex- 














pense 


$0.0025 


$0.0029 


$0.0032 


$0.0047 


$0 . 0043 


$0.00322 


Per cent. . . . 


I -' 3 


17.6 


17.6 


1S.9 


14-7 


150 


Investment 














Per plant. . . 


$566 


$3,325 


$5,279 


$20,594 


$2,277 




Per 1,000 














quarts milk 














sold 


$4 30 


$12 84 


$9 51 


$19 30 


$22 61 





TABLE XXV 265 

Table Showing Cost of Handling Milk in American Cities 



Markets for which 
reports were obtained 



Los Angeles, Cal 

San Diego, Cal 

Denver, Col 

Hartford, Conn 

Wilmington, Del. . . . 
Washington, D. C. . . 

Atlanta, Ga 

Peoria, 111 

Indianapolis, Ind. . . . 
Des Moines, Iowa. . . 

Dubuque, Iowa 

Kansas City, Kan . . . 

Topeka, Kan 

New Orleans, La ... . 

Baltimore, Md 

Springfield, Mass . . . . 

Detroit, Mich 

Minneapolis, Minn.. . 
Kansas City, Mo . . . . 

Butte, Mont 

Lincoln, Neb 

Omaha, Neb 

New York City 

Asheville, N. C 

Oklahoma City, Okla 

Cincinnati, Ohio 

Columbus, Ohio 

Portland, Ore 

Philadelphia, Pa 

Providence, R. I 

Sioux Falls, S. D . . . . 

Nashville, Tenn 

Salt Lake City 

Richmond, Va 

Spokane, Wash 

Milwaukee, Wis 



Prices per 
quart paid to 
producers for 
milk delivered 
F. 0. B. city 


Cents 


9 


I 


10 


3 


7 


5 


10 


5 


9 


S 


10 


5 


12 


5 


7 


9 


7 


5 


7 


8 


7 





8 


7 


7 





9 


5 


10 


5 


9 


75 


7 


9 


8 


I 


9 





7 


5 


8 


2 


7 





9 


I 


8 


8 


7 


5 


7 


5 


8 


6 


8 


3 


9 


I 


9 


7 


7 


5 


9 





/ 


I 


10 





7 


9 


8 


7 



Prices charged 

by dealer per 

quart of milk 

delivered to 

consumers 



Cents 

13 

16 

12 

16 

14 

17 

20 

13 
13 
15 
12 

14 
14 
16 

17 
15 
15 
13 
16 

15 
14 
14 
16 
16 
15 
14 
15 

14 -5 

14 

16.5 

13 
18 

12.5 
15 
15 
13 



Cost for han- 
dling and dis- 
tributing one 
quart of milk 

including 
dealers' profit 



Cents 
3-9 



Per cent of 

retail price 

paid to the 

producers for 

milk delivered 

F. 0. B. city 



Cents 
70.0 
64.4 
62.5 
65.6 
70.0 
61.8 
62.5 
60.8 

57-7 
52.0 

583 
62 . 1 
50.0 

59-4 
61.8 
65.0 

52-7 
62.3 
56. 2 
50.0 
58.0 
50.0 

5''^-9 
55 o 
50.0 
53-6 

57-3 
57-2 
65.0 
58.8 

57-7 
50.0 
56.8 
()() . 7 

52.7 
66. q 



266 MANAGEMENT OF DAIRY PLANTS 

9. Relation of Retail Price to Quantity Sold. — It is consid- 
ered by milk dealers that one retail wagon should distribute 
at least 200 quarts daily in order to be operated at a 
profit. Daily sales of 250 quarts per wagon is considered as 
a fair average business per driver for a well-established milk 
plant. 

The size of bottles used and the amount delivered to each 
consumer are important factors in determining the marketing 
cost. The value of the product handled is still another factor 
of importance. It is considered that it costs about the same 
to handle and market one quart of milk and one quart of 
cream; the profit should therefore be the same in dollars and 
cents on the same quantity. It is a fact, however, that where 
there is a loss in handling cream it amounts to more money than 
the loss incurred in handling the same amount of milk. It also 
costs a fraction more to deliver a quart of cream than a quart 
of milk, as the cream customers are usually more scattered 
than the milk customers and they receive cream in smaller 
quantities. There should always be a greater margin on the 
smaller quantity, as the factory labor, office labor, and cost 
of delivery is the same for a pint of milk as it is for a 
quart. 

The cost of making a delivery of milk and cream should be 
closely determined and the price charged should be in accord- 
ance therewith. The following schedule was adopted by one 
plant in 1 91 6 as a reasonable charge for the various sized deliv- 
eries. This schedule might, however, not be suitable to other 
market milk establishments working under different conditions, 
but it illustrates the system usually adopted by most milk dis- 
tributors : 

I gallon milk in bulk $ .28 

I quart milk in quart bottle 08 

I pint milk 05 

I gallon 20 per cent cream in quart bottles. . . i . 20 

I quart 20 per cent cream 35 

I pint 20 per cent cream 20 

^ pint 20 per cent cream 12 



COST OF MARKETING DAIRY PRODUCTS 267 

II. Selling Sweet Cream and Milk at Wholesale. — As the 

commercial ice cream business is increasing at a rapid rate, and 
as the population of the cities is increasing, the demand for 
sweet cream for ice cream making and for retail purposes is 
becoming greater and is also more difficult to meet. It is there- 
fore possible for creameries to establish markets for sweet 
cream and obtain more money therefor than can be obtained 
by making the cream into butter. 

The creameries of the middle West have experienced no 
difficulty during recent years in obtaining for sweet cream a 
price of 10 cents or more above highest New York quotations for 
extras F. O. B. their shipping station. Under such conditions, if 
the quotation of the New York market for extras were 30 cents 
and sweet cream were sold at 40 cents per pound butter fat and if 
the cream were made into butter and sold at 30 cents per pound 
then one pound fat made into butter would be worth 30 X 

122 

— = 36.6 cents. Considering that the cost of preparing the 

100 

cream for marketing it at wholesale is equal to the cost of manu- 
facturing it into butter then a gain of 3.4 cents has been made 
by marketing the product in the form of cream. 

If sweet cream under the same conditions were sold at 50 
cents per pound butter fat as against 40 cents per pound of 
butter then a pound of fat made into butter would be worth 

122 

40 X = 48.8 cents, or a gain of only 1.2 cents would be ob- 

100 

tained by selling sweet cream. It is fair to assume that the cost 
of pasteurization and cooling of the sweet cream to be sold 
will about equal the cost of manufacturing the butter, as 
sweet cream should be cooled to within a few degrees of freez- 
ing before it is shipped. The method of preparing sweet cream 
for market is the same as that for preparing sweet cream for 
ice cream making. 

This method of disposing of the butter fat is particularly 
advantageous to the cooperative creamery. The producers 
are willing to furnish sweet cream to the creamery if they are 



268 



MANAGEMENT OF DAIRY PLANTS 



paid for the extra labor involved. The creameries selling 
sweet cream seldom experience much difficulty in improving the 
quality. Even what is bought as sour cream will be much im- 
proved. Therefore, we may consider this system as being of 
much educational value to the creamery and to the pro- 
ducers. 

A creamery located in a city may find it profitable to sell milk 
and cream to big consumers and dealers, such as hotels, res- 
taurants, bakeries, etc. A route for such business was estab- 
lished in a medium-sized city in the middle West, 191 5, on 
which the daily output was as follows: 



Sold 
for 



Purchase 
cost 



Gross 
profit 



161 gals, milk at 20 cents 32 . 20 

136 qts. milk at 8 cents 10.88 

13 pts. milk at 5 cents 65 

32 gals, cream at 70 cents 22 .40 

44 qts. cream at 30 cents 13 ■ 20 

5 qts. whipping cream at 60 cents 3 00 

4 pts. whipping cream at 35 cents i .40 

4 half pts. whipping cream at 20 cents . . .80 

10 qts. lactone at 8 cents 80 

3 gals. B. milk at 16 cents 48 

8 qts. B. milk at 5 cents 40 

Total amount of dailv sales $86. 21 



24 
4 

21 
7 



22 
95 
23 
32 
2,3 
83 
32, 
16 

38 
06 
04 



7.98 

S-93 

.42 

1.08 

5-87 
2.17 
1.07 
.64 
.42 
.42 
•36 



$59.85 $26.36 



The purchase cost of the milk was on an average $1.75 per 
hundred pounds delivered at the creamery or market milk 
plant and the cream about 40 cents per pound of butter fat. 
The plain cream as sold in the city contained 20 per cent of 
butter fat and the whipping cream 30 per cent of butter fat. 
The cost of lactone was about the same as for whole milk and for 
buttermilk about two cents per gallon. 

The proportion of daily expenses to be charged against this 
route was approximately as follows, not including delivery. 



COST OF MARKETING DAIRY PRODUCTS 269 

Factory Costs 

Labor in factory and office $ 6.97 

Interest on investment, insurance, and depreciation 1.40 

Power, ice, and water 2.67 

Miscellaneous expenses, such as loss on surplus milk and 
cream, loss on bad accounts, stationery, advertising, 

etc 2.67 

$13.71 

Cost of Delivery 

Driver, monthly salary $ 5o.oo 

2 horses, feed, and care 36.00 

Shoeing and repairs, including painting of wagon 1500 

Interest and depreciation 16.00 

Monthly cost $127.00 

Daily cost $ 4.23 



Total daily cost • $1 7-94 

Daily net profit en route = 26.36 — 17.94 = $8.42. 

By studying the above report it is readily discovered that 
32 gallons of cream were handled at a loss; i6i gallons of milk 
were handled at a rather small margin, but it is supposed that 
these were all sold in cans and were therefore handled with less 
labor and with less loss. A creamery or a market milk establish- 
ment should have a daily report giving complete information 
about the day's sales. It should preferably be so ruled that 
the purchase cost and the gross profit can be figured in the 
office before it reaches the manager's desk. 



270 



MANAGEMENT OF DAIRY PLANTS 



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COST OF MARKETING DAIRY PRODUCTS 



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CHAPTER XX 

PREPARING THE BUTTER FOR MARKET 

A. BUTTER PACKAGES 

A FOOD offered for sale should possess quality, it should be 
put up in a neat and attractive package, and it should be of full 
weight or measure. The quality may not at all times be under 
absolute control of the manufacturer, as it is largely dependent 
on the quality of raw material received; but the appearance and 
weight, however, are under absolute control of the manufac- 
turer. It is a recognized fact that in order to receive prizes at a 
butter show the package of butter should reach the judges in 
perfect condition. Therefore the package is usually wrapped in 
burlap or heavy paper or both. The same appearance of neat- 
ness and carefulness which in this case influences the butter 
judge at a butter show will, to just as great an extent, influence 
the butter buyer and the consumer. The author knows of a 
creamery where the manager required that each box of prints 
be wrapped with heavy paper before shipping. During the 
summer season the paper would have some insulating value, 
but the greater value derived from this method lay in the good 
condition in which this butter arrived at the dealer's store. 
Some of the merchants were even placing this clean box on the 
counter as an advertisement for the butter. In some places the 
ordinary plain butter boxes are returned by the city buyers. 
Although this saves money to the manufacturer, yet the sys- 
tem should not be encouraged, as the boxes when returned are 
never clean and even if they are washed their appearance will 
never be that of a new box. Butter put up in these boxes will 
suffer in prestige with the dealer. During the summer season 
butter which cannot be shipped in refrigerator cars should be 
shipped in refrigerator boxes (Fig. 32). 

272 



PREPARING THE BUTTER FOR MARKET 



273 



I. The Butter Tub. — The butter tub is the most common 
form of package for American butter. The 60 or 63 pound 
tub is generally used, although tubs are manufactured of the 
following sizes, 50 pound, 40 pound, 30 pound, 25 pound, 20 
pound, and 10 pound. The larger tubs are held together by 
five wooden hoops. If the hoops are broken, they should be re- 
placed before the butter is marketed. The cover is fastened to 
the tub with four tins placed at an equal distance from each 




Fig. 32. — A refrigerator butter 
carrier. 




33. — A butter tub 
parafl&ner. 



other. Clasps should not be used, as they have a cheapening 
effect on the package. The standard butter tub is manufac- 
tured from dry ash wood; spruce is also used, but only for 
special markets. Although spruce is neater in appearance, it is 
objected to because it is more expensive and more readily 
soiled, and if the tub has not been properly prepared, it will 
impart more of a woody flavor to the butter. 

The tub is prepared as follows: the hoops are first tightened 
and the tub is washed thoroughly both outside and inside with 
hot water and washing powder. It is then soaked for about 
two hours so as to prevent leaking. After soaking it is rinsed 



274 MANAGEMENT OF DAIRY PLANTS 

with cold water to remove any sediment which might adhere to 
it from the water used for soaking. It is now placed over a 
steam jet for a thorough steaming, immediately after which it 
is parajB&ned. For that purpose a paraffiner fitted up with a 
special steam jet is most convenient. 

The liner is next placed in the tub in such a manner that the 
top thereof will, when folded over the butter, overlap from 
one-half to one inch. If the tub is not paraffined it should be 
soaked from eighteen to twenty-four hours in cold water and 
then rinsed. A couple of pounds of dry salt should be put into 
it and the tub rolled for the purpose of having an even layer of 
salt adhere to the inside. The liner is then placed and the 
butter should be packed before the tub becomes dry or else 
the salt will fall to the bottom. The salt is added for the pur- 
pose of preventing the formation of mold and to facilitate 
taking the butter from the tub. The surface of the tub after the 
butter has been packed should be free from holes and should be 
covered with a cloth circle and with a sprinkle of salt on top. 
The cover before being placed on the tub should be thoroughly 
washed and dried. 

The paraffining of the butter tub is of advantage, first because 
it prevents formation of mold, and second because it reduces 
shrinkage of butter. Mold may readily be prevented without 
special treatment of the tub. The main factors to consider are 
that the tubs and liners are stored in a clean and dry place and 
that the refrigerator is kept dry and free from mold. If liners 
have been exposed to mold spores they should be boiled in a 
concentrated salt solution. Rogers i found the shrinkage from 
butter packed in tubs, not paraffined, to be .95 of one per cent. 
This loss was reduced to .17 of one per cent when the tubs had 
been parafiined. 

II. The Australian Butter Box. — The Australian butter 
box derives its name from the country where it was originally 
adopted as the standard package. The size of it, inside measure, 
is 12X 12X 12 inches and it holds fifty-six pounds of butter. 
It is usually made of white spruce. The sides, top, and bot- 

1 Circular 130, B. A. I., Department of Agriculture, 1908. 



PREPARING THE BUTTER FOR MARKET 275 

torn are made of one piece. This package is used for special 
orders, particularly for butter shipped to foreign countries. 
These boxes are prepared for packing in the same manner as the 
tubs, but the side liners are long enough so that when folded on 
top they cover the entire surface. 

III. Special Square Box. — Special square boxes for solid 
packed butter are used primarily for butter shipped to the 
Pacific coast markets. These are made in various sizes as 
determined by the size of the cutter used. The block of butter 
when removed from the box should be of such a size that the 
least amount of butter has to be reprinted. These boxes are 
used extensively for storage when the butter has to be printed 
after the storage season. 

IV. Earthen Jars. — Earthern jars are used extensively m 
certain cities for local trade. These have the advantage over 
many other small packages in that the butter packed m them 
is less exposed to contamination. There is less shrinkage, and 
butter packed in them is usually preferred by the housekeeper. 
These jars are covered with a parchment circle bearing the 
trade-mark of the manufacturer. The objections to the earthen 
jar are that they require more labor in the factory, and that 
they give greater inconvenience in delivering to the dealers. 
These objections are lessened by the fact that there is practi- 
cally no loss of moisture with the jars and the cost of the pack- 
age is less than if cartons were used, as the empty jars are re- 
turned. 

V. The Bradley Butter Box. — The Bradley butter box is 
made from spruce with tin bands forming the rim at top and 
bottom. These boxes are manufactured in sizes from half 
pound to ten pounds. The boxes for shipment are packed in 
crates of various sizes. 

VI. The Gem Fiber Butter Package. — The Gem tiber 
butter package is a fiber box Hned with parchment. It is much 
similar in shape to the Bradley box and is packed in crates of 

various sizes. 

VII. The Butter Barrel. — The butter barrel is known 
particularly on the Pacific coast where it is used as a container 



276 MANAGEMENT OF DAIRY PLANTS 

for print butter sold in Alaska. These barrels are of three sizes, 
full barrels holding 180 pounds in two-pound prints, half barrels 
holding 96 pounds in two-pound prints, and quarter barrels 
holding 48 pounds in two-pound prints. 

These butter barrels are mostly made of spruce. They 
have iron hoops. The barrel is prepared similar to the butter 
tub. It is first washed in hot water and washing powder, then 
soaked for twelve hours, steamed and paraffined. The barrel 
is then lined with cheesecloth which is so folded on the bottom 
and on the side that the cloth forms a bag in which the butter is 
packed. After the prints, wrapped in parchment, have been 
packed in the barrel, the cheesecloth is folded on top and 
tied with a string in a similar manner as that of tying a bag. 
The barrel is now filled with a concentrated solution of salt 
brine. This is prepared by adding 35 parts of salt to 100 parts 
of water at ordinary temperature. This is churned for about 
thirty minutes. The brine thus prepared will contain about 
26 per cent salt. After the barrel is partly filled with brine it is 
headed up and is then completely filled with brine. 

Butter thus packed is often held for a year or more before it 
is placed on the table and often left without refrigeration. The 
brine preserves the butter reasonably well. Butter made for 
that purpose should be from high-grade cream, churned at a low 
degree of acidity, and should contain a low per cent of protein. 

VIII. Butter Tins. — Butter packed in tins is also marketed 
on the Pacific coast and sold primarily in Alaska and in the 
tropical countries. The print wrapped in parchment is placed 
in a loosely fitting tin. On top of the butter is placed a small 
square piece of wood large enough so it practically covers the 
end of the print. The cover is now placed on the tin and fas- 
tened in a crimping machine. It is then soldered. This is most 
readily done by having a felt pad saturated with soldering 
liquid and a bath with molten solder. The part to be soldered is 
rubbed on the felt pad and the tin is then dipped in soldering 
metal. The wood on top of the butter prevents the hot metal 
from touching the butter during soldering. The cover of the 
tin has two small holes, through one of them the tin is filled 



PREPARING THE BUTTER FOR MARKET 277 

with a concentrated brine, after which these holes are also sol- 
dered and the package is tested for leakage. It is advisable that 
the tins be lacquered both on the inside and outside. 

IX. The Danish Firkin. — The butter package most popular 
on the English market is the Danish firkin holding no pounds 
of butter. The firkin is made of beech wood. These firkins 
are prepared similar to the American tub and lined with parch- 
ment paper. The butter is solid packed in the firkin. 

X. Butter Print Boxes. — The most common boxes used 
for prints are of a fifty-pound size made from spruce, poplar, 
or Cottonwood. The inside measure of these boxes is usually 
13 X 13 X 9 1/2 inches. A flat box of 54 pound size has a dimen- 
sion of 23 1/4 X 14 1/2 X 5 1/4. The latter box is of a neater 
appearance, but the principal objection is that a greater surface 
is exposed to the atmosphere and the butter which is to be 
shipped without refrigeration during the summer season is 
more exposed to the heat. For local trade and for short ship- 
ments a fiber box is very satisfactory and it is cheaper than the 
wooden box. 

B. PACKING THE BUTTER 

I. Solid Packed Butter. — Butter when packed should 
have enough overweight so it will be of full weight at the time 
when it reaches the consumer or dealer. A sixty-pound tub of 
butter, if the butter is of good body, should not shrink to ex- 
ceed eight ounces in four weeks if kept in a properly cooled re- 
frigerator. If kept at a comparatively high temperature the 
loss will be greater. If the manager finds that more than eight 
ounces are deducted for shrinkage by the dealer then the matter 
should be investigated and the shrinkage may be found to be 
due to leaky butter, to overheated refrigerator at the creamery, 
to being overheated while in transit or at the store of the dealer, 
or to inaccurate weighing either at the creamery or by the 
dealer. The prepared empty tub with liners should be weighed 
on a scale that is sensitive to one-half ounce. The weight of the 
tub is marked on the hoop of the tub in reasonably small figures 
written with a pencil. The net weight of the butter should be 



278 MANAGEMENT OF DAIRY PLANTS 

stamped below the upper hoops and if eight ounces are allowed 
for overweight and if the net weight is 62 pounds and 8 ounces, 
then it is stamped 62 pounds. It is advisable to have all tubs 
contain the same amount of butter by weight, as by that system 
the work of taking inventories is facilitated. 

II. Print Butter. — Butter prints should be perfect and 
square in form; butter should not be printed when it is in such a 
soft condition that the corners of the prints will be rounded. 
Holes due to imperfect packing should be filled, as their pres- 
ence does not merely advertise poor workmanship, but will also 
lessen the keeping qualities of the butter. The usual size of the 
prints are, one-pound size, 4 5/8 X 2 1/2 X 2 1/2; half pound 
size, 4 5/8 X 2 1/2 X I 1/4. There are various other sizes, but 
those mentioned are the most common. 

When printing butter it is advisable to weigh each print be- 
fore it is wrapped, as the butter printer, regardless of how care- 
fully it is adjusted, will not print all of the prints the same size, 
as the weight of the print depends on the condition of the butter 
both as to body and packing as well as on the adjustment of the 
butter printer. If a butter print is too small a sufficient amount 
of butter should be added to the print before it is wrapped. If 
a print is too heavy the overweight should be removed with a 
sharp paddle. Scales used for that purpose should be sensitive 
to ten grains. When starting to print a churning of butter the 
printer may need readjustment. The empty box for the prints 
with liners should be weighed and the weight marked with 
small figures on the box. The weight of the butter wrappers 
should be known; the weight of the prints without wrappers for 
a fifty-pound box should be a trifle over fifty pounds ; four 
ounces are considered to be sufficient overweight on a fifty- 
pound box of print butter. Suppose the weight of the box with 
liners is five pounds, the butter wrappers five ounces, then the 
gross weight of the butter should be 5 -|- 5/16 + 50 1/4 = 55 9/16 
pounds. 

I. The Single Mold. — This is the oldest form of printer 
known. The disadvantage of this method of printing lies 
primarily in the imperfect shape of the print, the greater loss of 



PREPARING THE BUTTER FOR MARKET 279 

moisture in printing, and in the amount of labor required. The 
shape of the prints, if made by this kind of a mold, will depend 
upon the condition of the butter; hard butter may be printed 
into nice shaped prints, but softer butter will always produce a 
print which is far from perfect in shape. 

This printer requires readjustment when changing to butter 
of different body or of different firmness. By leaving the printer 
without readjustment it may affect the weight of the prints to 
the extent of from one to two pounds on fifty pounds of butter. 

The cost of printing butter by this system depends naturally 
on cost of local labor. Two experienced men or women, one 
printing and the other wrapping, can in ten hours print and 
wrap from 4,000 to 5,000 prints. 

2. The Wire Cutter. — The butter for this form of printer is 
packed in larger molds or boxes while in a pliable condition. 
The butter is then placed in a refrigerator for hardening and it is 
thereafter cut into prints with the wire cutters. Printers 
representing this method are the Friday, the Challenge, the 
Jumbo, etc. 

This latter method of printing may be considered as the best 
and most economical. The prints are square and perfect. The 
butter is packed when in such a condition that the minimum 
amount of moisture is lost. The wire cutters cause the least 
possible loss of moisture, and the prints, because the butter is 
more uniformly packed, will be more uniform in weight. The 
labor is somewhat reduced, as two men can produce more work 
by this system. 

III. Wrapping the Butter Prints. — In order to protect 
the butter a special wax paper is often used over the parchment 
wrapper. The parchment wrapper itself does not afford much 
protection from the absorption of flavors, but the wax paper 
does and is of much value in that respect. When properly 
wrapped around butter the wax paper forms practically an 
air-tight covering which also prevents the moisture from 
leaking out and penetrating the carton which is so common 
when only the parchment wrapper and the carton are used. 

The butter carton has come into prominence during recent 



28o MANAGEMENT OF DAIRY PLANTS 

years. This is due primarily to the fact that it adds in appear- 
ance of the package, which is a big factor in selUng the goods. 
It also makes a package which is more easily handled by the 
dealer. It reduces shrinkage and prevents absorption from 
articles which otherwise might spoil the flavor of the butter. To 
afford the greatest amount of protection and to remain in a 
clean and attractive condition such cartons should be paraffined 
on both sides. 

The amount of labor required for wrapping the prints with 
the second wrapper and placing them in the cartons is equal to 
about two-thirds of the amount of labor required for printing 
and wrapping, differing with the different styles of cartons used. 

IV. Butter Printing in Large Factories. — In larger fac- 
tories the cost of printing, wrapping, and placing the butter in 
cartons may be materially reduced by the installation of more 
expensive machinery for printing, wrapping, and placing the 
butter in cartons. 



CHAPTER XXI 
ADVERTISING DAIRY PRODUCTS 

Advertising is everywhere recognized as a valuable business 
force. It offers an efficient, economical way of reaching the 
public, educating it to the merits of a commodity, stimulating, 
redirecting, or creating buying desires and finally developing 
and effecting sales. It is used in every field of industry and 
trade and for many unique purposes outside of these fields. It 
is employed for every phase of the marketing task, from dis- 
arming public criticism or creating good will to securing orders. 
How generally advertising is recognized for its usefulness may 
be gathered from the fact that something like a billion dollars is 
annually invested in it by the business men of the United States 
alone. 

Advertising may be employed in the creamery business as 
well as in any other. There is nothing in the nature of the 
manufacture and distribution of dairy products to make adver- 
tising impracticable or unprofitable. On the contrary, some of 
the outstanding successes in advertising are in this field. Sev- 
eral brands of condensed milk have gained national reputation 
and captured national markets with the aid of advertising. 
Several brands of butter are familiar to housewives in a large 
portion of the United States because of advertising and many 
brands have gained sectional prominence. One selling cam- 
paign, in which advertising played a large part, increased butter 
sales from 450,000 pounds to 7,000,000 pounds in five years. 
Several brands of cheese have been established in wide favor 
through advertising, while many special advertised brands of 
ice cream command the markets in various cities and their 
adjoining territories. 

In the creamery business, advertising serves several purposes, 
all of which have to do with marketing either directly or in- 

281 



282 MANAGEMENT OF DAIRY PLANTS 

directly. Some creameries may not find it desirable to use 
advertising for all of their purposes; some may prefer to sell 
their entire output on the commission market, and therefore 
they may not need advertising to aid them in marketing. But 
such concerns may find advertising valuable for gaining new 
patrons or holding the old, for example, and maintaining good 
will 

THE PURPOSES OF ADVERTISING 

I. Advertising to Aid Promotion. — When a creamery busi- 
ness is in the organization stage, or is being enlarged, or for any 
other reason needs promotion, advertising maybe used to put the 
business properly before the people who are to be interested as 
stockholders, or patrons. It may be used to create a favorable 
community attitude and secure the confidence of business 
men, bankers, and farmers. It may be used to enlarge the 
list of patrons in new or old territory. It must not be under- 
stood that advertising can take the place of effective personal 
solicitation in these matters, but it can pave the way for per- 
sonal work and support it. 

More or less advertising space may be advantageously bought 
for these purposes. Local newspapers will, as a matter of news 
and also of community pride and welfare, give considerable 
space to the promotion of a sound creamery proposition, but 
they should not be expected to donate all the space that may be 
required to promote the business phases of the project, because 
advertising space is the most important commodity they have 
to sell. Moreover, their cooperation will be more thorough if 
they are made to feel that benefits are mutual. 

Promotion advertising ought to be written conservatively; 
it should be hopeful or optimistic, but not over-enthusiastic nor 
too generous in its promises of returns. It should keep well 
within what may be accomplished and seek to establish confi- 
dence. 

II. Advertising for Prestige and Good Will. — Prestige 
and good will are not secured ordinarily except through years of 
satisfactory dealing with the public. Yet they may be devel- 



ADVERTISING DAIRY PRODUCTS 283 

oped rapidly by advertising. Through advertising, a business 
may be made famiUar to the trade or to consumers in months 
where otherwise it might take years. If the good points of a 
creamery business, its fair deaUng and the excellence of its but- 
ter cheese, or ice cream are again and again put before buyers 
in kn interesting, skillful way, they will soon come to believe 
what they read and the result will be strong prestige and a 
valuable good will. Too often a creamery goes on year after 
year doing business honestly and manufacturing a high-class 
product without its constituents realizing it or thinking very 
much about it, because it doesn't advertise these facts and thus 
emphasize them. The result is that its prestige and good will 
grow slowly. Advertising to build good will must be done 
skillfully and it must, of course, have back of it honest methods 
and a high-quality product. 

III. Advertising to Establish a Trade-Mark. —If a cream- 
ery can make the people in its trade territory think not merely 
of "butter " when they think of buying butter, but of its special 
brand of butter, it has accomphshed something that counts 
much toward success. This close association of a trade name 
and product cannot be established in any other way as quickly 
or as effectively as through advertising. It may be possible, 
of course, to bring it about through many years of sellmg with- 
out sepcial advertising, but no business can afford to wait long 
enough to do it in that way. By constantly associating the 
product and the trade name in newspapers, on billboards, on 
window cards, in circulars and booklets, the two are fixed to- 
gether in the minds of buyers in very quick time. This result 
is worth much to the manufacturer and will of itself justify 
the investment of money in advertising. 

IV. Advertising to Educate. — The education of the pubhc 
as to 'the value of a particular creamery commodity is necessary 
to interest them in buying that commodity. That is true 
whether it is butter, which they have long been accustomed to 
buving, or whether it is specially prepared market milk or ice 
cream, which are not so well known to them. It takes a good 
deal of persuasion to stir people out of an old, deep rut of buying. 



284 MANAGEMENT OF DAIRY PLANTS 

That is especially true of dairy products. For example, to most 
folks butter is merely butter and milk is merely milk and ice 
cream is merely ice cream. They cannot be induced to buy skill- 
fully prepared products, insured as to wholesomeness and high 
food value, without first having been educated to believe that it 
is worth while to buy such products and pay more for them than 
for ordinary butter, milk, or ice cream. If the public are to buy 
high-quality butter, they must be told how high-quality butter 
is made, how its flavor is secured, how it is packed and pro- 
tected against contamination, how it excels in food value, and 
how it provides certain elements for human growth and health. 
Not until they understand these things can the public be dis- 
criminating. 

If a creamery plans to manufacture and sell ice cream, it 
must in many communities create a new demand for it; it must 
convince many housewives that ice cream when properly made 
is not merely a confection, but a substantial food, and that they 
are not indulging in a luxury in buying it and serving it, but 
that they are making an economical addition to the bill of fare. 

If a creamery takes up cheese production, it likewise has an 
educational task on its hands to make its constituency under- 
stand that cheese is one of the most economical of foods as well 
as one of the most appetizing. The patrons of most creameries 
do not know this and consequently cannot be expected to buy 
enough cheese to make its manufacture profitable without first 
being educated to the buying point. 

This education is best accomplished through advertising. 
Of course, it might be carried on through personal salesman- 
ship, or by letting folks find out the value of these products for 
themselves, but the one method would be too expensive and the 
other too slow. Advertising has well been termed ''the natural 
and effective business missionary." It furnishes a way of 
educating the public quickly and at comparatively small ex- 
pense. Nowhere are its services more needed to-day than in the 
dairy business generally, where so many conditions and cir- 
cumstances have conspired against its proper growth and 
expansion. 



SPEND YOUR MONEY WISELY 

When You Buy Food Divide $10.00 
As Follows for Best Results: 

I Milk and Its Products (Butter, Ice Cream and Cheese) $4.40 I 
I \ egetables and Fruits | $X»70 

I Bread and Cereals \ $1.30 
[ Meat and Fish | $1,20 

I E^gg» I 60 cents 
I M».d.^u, I 50 cents 
|sug».| 30 cents 




Dr. Sbcnnto ol CoIuoIm Uahr«ij(y aod otb<r 
tutborities uy: 

Th* •vert(e Aaoteu fiauly'i lood upeadinm* 
Now Ar« Should B* 

MA tsd iC Pw^m • «« 

Brwd M4 Cxdi II II 

ViOkbta -d trt II II 

EfP • • 

»>t» II 



U jau wa m, MOM MUX. BUTTER. ICt CRIAM AM> 

You will have better liealttHie more 
efficient-ami save money. 



yfjvi|(gjfjig>yjiii'l|M>ij^^^ 



Fig. 34 



mmuBBs 



FOOD COMPARISONS 

These Lines Show the Amounts of Actual Food Secured When One 
Dollar Is Spent for Any of the Following Foods at Prices Named 



Milk at iSc a quart ^ - — The cheapest food 



Butter at 75c a pound 



Cheese at SOc a poi 



fESSBBSMSam 



I at 40c a pound 




Fig. 35. — Advertising the food value of dairy products. 

283 



286 MANAGEMENT OF DAIRY PLANTS 

V. Advertising to Back Up the Selling Force. — Every 
well-managed business seeks to give the fullest support and 
cooperation to its selling force, whether it be its own salesmen 
and solicitors or jobbers or retailers who handle the goods. 
Advertising provides an effective and economical means for 
providing that support and cooperation. It may be sent out 
ahead of the salesman or the retailer to prepare the way for him. 
If a creamery takes up the manufacture of cheese, advertising 
may be used to inform the retail merchant concerning its plans 
and products. Then when its salesman calls on the merchant 
he finds he is saved from putting a lot of valuable time into 
simple explanations because the advertising has taken care of 
that ; he needs to concern himself only with the real business of a 
salesman and get the order. Likewise, advertising may be used 
to acquaint the buying public with the product and arouse its 
desire for it, thereby saving the retail merchant much valuable 
time in making explanations to introduce the new product. 
Advertising will do this preliminary educational work much 
more economically than the salesman or merchant can. More- 
over, both a selling force and retail distributors will work more 
enthusiastically for a product that is being promoted skillfully 
through advertising. 

Advertising for Direct Sales. — Some lines of business which 
distribute direct to customers find advertising a satisfactory 
means of bringing about sales. Frequently a creamery is so 
situated that it is best for it to build up direct distribution. It 
may not economically maintain a soliciting force to make house- 
to-house calls and it must then rely upon advertising to reach 
the public. Then advertising must combine many of the pur- 
poses heretofore named; it must be educational, it must help to 
establish a trade-mark, it must help to create good will, it must 
present selling arguments and stimulate action. 

VI. ''Policy" Advertising. — ''Policy" advertising is a 
name given to advertising bought not so much for the direct 
object of increasing business as to secure or maintain the good 
will of influential individuals or groups. It includes much of the 
advertising in society programs, menus, hotel registers, and like 



ADVERTISING DAIRY PRODUCTS 287 

mediums. Usually it is sound business not to advertise except 
when there is reason to believe it will bring returns, yet often 
''policy " advertising seems unavoidable. It should be reduced 
to a minimum. Many times it is better policy to make gifts 
outright and maintain advertising on a sales-promotion-getting 
basis. 



ESSENTIALS IN CREAMERY ADVERTISING 

Before a creamery can make satisfactory use of advertising, 
its business must meet several requirements. It must have a 
product worth advertising and which lends itself to advertising; 
that product should be put up in distinctive and convenient 
packages, if possible, bearing a trade-mark or brand name; 
there must be a definite appropriation for advertising; there 
must be a complete selling and advertising plan, worked out to 
the last step by which the product reaches the consumer; the 
advertising must be in charge of some one who will give it 
intelligent attention; and finally, honest goods, honest methods, 
and thorough service. 

I. The Product. — Successful advertising demands first of 
all a product that lends itself to advertising. The product 
must have quality, of course, but it must have something more 
than that; it must also have individuality. That is, it must be 
different from the common run of such products. 

If the product is ''just butter," for example, no different from 
the great mass of ordinary creamery butter, than advertising is 
not likely to aid very much in marketing it; that kind of butter 
is probably best sold on the commission market. It lacks good 
talking points and advertising must have talking points. It 
isn't worth the extra price that advertising should get for it. 
But if a creamery manufactures butter of uniform high quality, 
into which an efficient butter maker has put enough brains, 
skill, and individuality to make it different, then advertising 
will help to find a special market for it at special prices. 

II. The Package. — In dairy manufacturing, the package be- 
comes so closely a part of the product itself that it is usually 



288 MANAGEMENT OF DAIRY PLANTS 

dealt with from the manufacturing standpoint. It is used 
because it must be used; a container is necessary. It is generally 
made as cheaply as it can be made and still serve its purpose, 
which is to insure the delivery of the product to the consumer 
in convenient form and quantity and without loss of quality 
or danger of contamination. Its cost is usually charged in the 
cost of manufacture. 

Yet the package may be more than a mere container; it may 
also be a valuable aid to selling and one of the important factors 
in advertising. When properly designed and used, the package 
does not merely supply a necessity; it also furnishes an oppor- 
tunity — an opportunity to give the goods additional favorable 
publicity. At the time of buying, the package is the one thing 
that strikes the eye of the buyer. It needs, therefore, to be 
considered from the selling and advertising standpoint as well 
as from the manufacturing standpoint. 

If the package is to be something of an advertisement in it- 
self, it must fulfill certain requirements: First, it must have 
attention value. Through its design and color and the printed 
matter on it, it should strike the eye of the consumer and get 
his notice when he buys it or when he sees it on display; the 
product will then mean more to him and he will be more likely 
to ask for it another time. Too many creamery packages fail to 
make any impression because they are commonplace and do 
not stand out; they are not different. Second, it must have 
interest value. After a package has secured attention, it must 
arouse favorable interest; the consumer must also like it. 
The package must be attractive; it must please the eye 
through its good design, through its well-arranged printed 
matter, through proper use of colors; its appearance must 
be in harmony with the product, suggesting a clean, whole- 
some, good-tasting product. Third, it must have individual- 
ity. A package should be designed and printed so that it 
will not be mistaken for any other. It should identify the 
product it contains so that the consumer who likes it will be able 
to remember it easily and make certain that some other prod- 
uct will not be pushed off on to him. A great majority of 



ADVERTISING DAIRY PRODUCTS 289 

creamery packages are too much alike. Fourth, it should carry 
the trade-mark. At every opportunity the trade-mark or trade 
name should be used in advertising a product. There is no 
better opportunity than in such close association with the prod- 
uct as is possible on the creamery package. 

A trade-mark serves two fundamental purposes. It identi- 
fies a product or distinguishes it from similar products of other 
manufacturers and it provides the purchaser with an easy way 
of recollecting it when he again needs that kind of a product. 
Both of these purposes must be attained by every manufac- 
turer to establish a permanent market for his goods and they 
cannot be attained readily without a trade-mark. In addition, 
the trade-mark serves a third important purpose: it gives con- 
tinuity and repetitious value to advertising. When the trade- 
mark is used in every advertisement, in a more or less con- 
spicuous way, it links each advertisement with every other and 
makes them a unit; when it is not used, each advertisement 
stands alone and gets very little aid from advertisements that 
have gone before. 

To fulfill its purposes, a trade name should meet certain re- 
quirements. First, it must be distinctive or different. Then it 
will be more readily remembered and be less likely to be con- 
fused with other trade-marks. Second, it must be legible and 
easily read or taken in by the eye. Words or geometrical figures 
that are worked into intricate designs are often so difficult to 
see clearly that no effort is m^ade to remember them. Third, it 
must be brief or simple. If a word or words, the briefer the 
better for conveniently storing it in the memory and recalling 
it. If a figure, the less there is to it the better for the same 
reason. Fourth, if it is a word or words, it should have a pleas- 
ing sound and be easily spoken. Fifth, it should be suggestive 
of the product and be readily understood. Sixth, it should be 
applicable, if possible, to all the products of the creamery. If 
one trade-mark is used for all products, then the advertising 
done for each will help all the others; the good reputation of one 
will be extended to the others, which is highly desirable. Sev- 
enth, it should be valid. It should be possible to defend the 



290 



MANAGEMENT OF DAIRY PLANTS 



trade-mark chosen against all infringement. That may not be 
so important to the smaller creamery with merely local trade, 
but it is highly important to the larger concern. Eighth, it 
should be permanent. It costs too much to establish a trade- 
mark to abandon it for a new one. 
Trade-marks are made up mainly of materials which have 




Fig. 36. — A well designed trade mark. 



been classified in four groups: Pictures, words, syllables, or dis- 
connected groups of letters. 

Careful tests indicate that pictures rank first as to the ease 
with which they are recognized and the accuracy with which 
they are recalled; forms second, words third, and syllables 
fourth. While pictures have this advantage in tests, yet they 
are not satisfactorily reproduced in all advertising matter and 
on all packages. Moreover, their satisfactory reproduction 



ADVERTISING DAIRY PRODUCTS 29I 

involves greater expense in art work and printing. Names or 
words are perhaps most widely used because they lend them- 
selves nicely to many uses; moreover, experience shows that 
they are readily established in public favor within a short time. 

A trade-mark may be established in either one of two ways, 
by registration or by adoption and use. Registration is the 
most certain way to guarantee exclusive right to a trade-mark 
and registration is quite easily secured through application to 
the United States Patent Office (provided it is to be used in 
interstate trade). By adopting a trade-mark and using it 
continuously exclusive right thereto may be established, but 
the task of defending that right is more difficult than in the case 
of a registered trade-mark. ^ 

If it is proposed to make extensive use of a trade-mark or 
trade name, a legal specialist on this subject should be consulted 
about the name or design to make sure that it can be properly 
protected. In place of such special advice, this general state- 
ment as to trade-marks' validity may be of assistance: 

"Generally speaking, a trade-mark to be valid must not 
be the name of a person, name of a place, descriptive of the 
goods or of the quality of the goods, or old in the class into 
which the goods fall on which the mark is to be used, according 
to the arbitrary classification of the Patent Office."— W. A. 
Knight, trade-mark specialist in Judicious Advertising, Dec, 

1911. 

In recent years there has been a marked trend toward the 
coined or invented word or trade name. They are more likely 
to be vaUd, they are usually strong in attention value, and if 
they are suggestive they are excellent. Sometimes, however, 
they are not very easily remembered. 

III. A Definite Appropriation. — Advertising is best carried 
on if a definite sum of money is set aside for a year, or a selling 
season or a campaign. That is true whether a business can 
afford to invest only $200 a year in advertising or $20,000. 
Moreover, it is best to prepare a budget which divides the 

1 Complete information on trade-mark registration will be furnished on request 
by the United States Patent Office in Washington; the fee for registration .s $10. 



292 MANAGEMENT OF DAIRY PLANTS 

appropriation among the different kinds of advertising to be 
used. Without a definite appropriation, advertising is Hkely to 
go on in a haphazard way, without continued purpose, without 
enthusiasm. Without an appropriation, the man in charge of 
the advertising cannot be certain that he can afford to do this 
or that thing. With an appropriation for a year, advertising 
may be planned for a year; each step may be taken with satis- 
faction because money has been set aside for it, and when the 
total appropriation is kept in mind it is easily determined 
whether a particular advertising outlay is reasonable or not. 

The amount of money that should be set aside for advertising 
by any creamery business can be best determined by the mana- 
ger after a careful study of the special circumstances and trade 
conditions of his business. Even then he cannot be very cer- 
tain as to the percentage of his gross sales he should set aside for 
advertising until he has tried out an annual appropriation or 
two, and studied the results of his advertising expenditure. 

A few general principles may guide in determining an approp- 
riation. Advertising should always pay for itself and in addition 
return a profit, either through increased sales, more economical 
selling or strengthened good will or some other valuable thing, 
and the appropriation should not be so large that such a return 
is not reasonably probable. A new business requires a larger 
percentage of gross sales for advertising than an old-established 
business. If it is intended to increase production and secure 
larger sales in old territory or new, the appropriation must be 
larger than if it is intended merely to hold an established trade. 
If competition is keen, the appropriation percentage will have 
to be larger than if there is no competition. Generally, it is best 
to appropriate conservatively until experience proves what is a 
sound basis of appropriation for a particular business. 

The appropriation set aside for a year's advertising is usually 
a certain percentage of the gross sales of the preceding year. 
Creameries doing a wholesale business appropriate all the way 
from 0.1 of one per cent of their gross sales to i per cent. Cream- 
eries doing a retail business necessarily appropriate a larger 
percentage, often as much as 5 per cent of gross sales. 



ADVERTISING DAIRY PRODUCTS 2y3 

It is convenient to keep a special account for advertising 
rather than charge expenditures for this purpose to the general 
expense account. 

IV. A Definite Plan. — As important as an appropriation is 
a plan for the year's or season's advertising. There should first 
be an objective. It is essential to make a careful study of the 
marketing problems of the business to learn how advertising 
may help to deal with them. Perhaps the trade needs to be 
educated as to quality; or, maybe a trade name or brand needs to 
be popularized; or, possibly it needs to be interested in a prod- 
uct it has not used extensively previously. Then these needs 
should become the aims of the year's advertising. Next there 
should be a determination of the general arguments or appeals 
that are to be made through advertising to accomplish these 
objectives. Then it is important that there be a careful study 
of the buying public to which the arguments or appeals are 
to be presented so that they may be presented most effectively. 
Who are the people for whom the advertisements are to be 
written; what are their financial circumstances; what are their 
prejudices and likes; what and how do they think — these and 
other questions like them must be asked and answered. Fol- 
lowing that, the plan must determine what advertising mediums 
shall be used — newspapers, circular letters, exhibits, street-car 
cards, billboards, booklets, etc., and how much of the appro- 
priation shall be devoted to each. Finally, the advertisements 
and the letters and the signs, etc., must be prepared to fit the 
plan, and they should be prepared well in advance of their use 
so that they may be carefully written and revised, put into type, 
and perhaps again revised in proof. In the best managed cam- 
paigns every item of advertising is prepared and approved be- 
fore a single item is published. 

That sort of planning demands much thought and hard work, 
but it pays. It puts brains and energy into advertising. It 
lifts advertising out of uncertainty into certainty. To plan is 
always the intelligent thing to do. Without planning adver- 
tising is bound to be unintelHgent, and unprofitable as 
well. 



294 MANAGEMENT OF DAIRY PLANTS 

V. An Advertising Manager. — If a business is to make use 
of advertising, some one connected with that business ought to 
assume the duties of an advertising manager. In the smaller 
creamery those duties are likely to fall upon a man who is 
already overloaded with work, but even that man should find 
some time to give special thought and attention to advertising, 
if the business is to make use of advertising. He will find not a 
little pleasure in it. He should put a good book or two on ad- 
vertising on his own shelves and borrow what his public library 
has to offer him; he should read some magazine that deals with 
advertising and marketing problems; he should study good 
advertisements, not only of other concerns in his line of busi- 
ness, but in other lines, and through his study discover what it 
is that makes their advertising effective; he should file examples 
of advertising that are likely to be helpful to him so that when 
he writes his own advertising he may have the help of good 
models. He should interest himself in the local advertising club, 
if there is one, and cultivate the acquaintance of men in the 
newspaper and business fields who are experienced in adver- 
tising. Circumstances may not permit the part-time adver- 
tising manager to do all of these things, but he should do as 
many as possible. After all, the success of a business depends 
very largely on its selling end, and advertising is an important 
factor in selling. 

MEDIUMS FOR CREAMERY ADVERTISING 

I. Newspapers and Magazines. — In any campaign to pro- 
mote creamery product sales, the largest part of the appro- 
priation is likely to be invested in space in newspapers and other 
publications. Through them it is possible to reach the buying 
public quickly, conveniently, and economically. Frequently, 
a well-established newspaper in a smaller city will go into 75 per 
cent of the homes of the city. In one such middle Western city 
the one daily newspaper enters 3,500 out of 4,000 homes. It 
sells its space at 50 cents an inch (having also a large outside 
circulation). For $5, a selling message can be sent into those 



ADVERTISING DAIRY PRODUCTS 295 

3,500 homes at much less cost then through any other medium. 
Granting that this space may not be as effective as a circular 
letter, for example, the advantage in lower cost is still heavily 
in favor of the newspaper space. For that reason, from 65 to 75 
per cent of the total expenditures for advertising in the United 
States is for newspaper and magazine space. 

The value of any newspaper or magazine in advertising 
creamery business depends upon several things: 

First, it depends upon the way in which the circulation fits 
the creamery's trade territory. If a creamery has the problem 
of reaching the people of its home city, then that local news- 
paper with the largest list of home subscribers is likely to be 
most effective, even though the others may have a greater total 
of subscribers in the city and outside. If the problem is to in- 
crease ice cream sales in half a dozen nearby towns and cities, 
then best results are likely to be secured by selecting a news- 
paper of good local circulation in each of the towns. Some one 
newspaper of general circulation may have many subscribers 
in each of the six towns, but it likely has also a considerable 
circulation in twenty or thirty other towns which has little 
value to the ice cream manufacturer; the money he puts into 
that circulation outside of his trade territory is largely wasted. 
Newspapers and magazines of interstate or national circulation 
are not valuable to the creamery with a business that is more or 
less localized. 

Second, the advertising value of a newspaper depends upon 
whether it reaches the kind of people a creamery wants to reach. 
To promote the sales of high-quality butter a newspaper with a 
smaller but select list of subscribers may bring better returns 
than a newspaper with a larger list which includes a big per- 
centage of people who are not prospective customers. That 
newspaper in a community which reaches the housewives is 
likely to be best for creamery and other food products. 

Third, the advertising value of a newspaper depends upon 
whether it regularly carries much high-class advertising. If 
one publication carries more business announcements in its 
advertising columns than another, it is quite certain that house- 



296 MANAGEMENT OF DAIRY PLANTS 

wives will read its advertising columns more thoroughly and its 
space value is correspondingly larger. 

The price of advertising space in newspapers varies directly 
according to circulation. In publications of smaller circulation 
it is sold by the column inch, which is a space one column wide 
and one inch deep. In publications of larger circulations it is 
sold by the agate line, of which it takes fourteen to make a 
column inch. There is no uniform basis for prices, although the 
charge for space in publications of larger circulations may often 
be approximated by figuring it at one-third of a cent per agate 
line per thousand of circulation. Weekly newspapers of from 
1,000 to 2,500 circulation have rates ranging from 15 to 20 cents 
per inch, and of from 2,500 to 4,000, from 17 1/2 to 25 cents; 
sometimes there is an additional charge of 5 or 6 cents per inch 
for composition. Dailies charge all the way from one-seventh of 
a cent to one-fourth of a cent per agate line per thousand circu- 
lation. Cost of illustration and other special features is borne 
by the advertiser. 

II. Signs and Billboards. — These forms of advertising fit 
well into many creamery sales campaigns. They do not per- 
mit of the presentation of much argumentative or educational 
matter, but they are especially effective in giving emphasis and 
repetition to trade-marks or trade names. When attractively 
designed and printed or painted and well placed, they catch 
the eye of large numbers. Attractive smaller signs placed in 
retail stores where creamery products are for sale get the 
attention of the customer right at the time that he is in a buy- 
ing mood and are valuable for that reason. Signs and bill- 
boards are used in nearly all extensive advertising campaigns. 
The preparation of attractive show cards or signs is quite ex- 
pensive, however, and for that reason they are not always 
available for smaller concerns. This objection may be met in 
part by purchasing stock cards from large lithographing and 
printing houses on condition of the right to exclusive use of 
them in a limited territory. Show cards are usually accepted 
and used by the retail dealer handling a product as a desirable 
cooperation of the manufacturer in promoting sales. Billboard 



ADVERTISING DAIRY PRODUCTS 297 

space is usually best purchased through local or general bill- 
board or outdoor advertising companies which assume full 
responsibility for painting or posting and upkeep. Electric 
signs are very attractive, but the expense of erecting and 
maintaining them is large. 

III. Street Railway Cards. — Where city trade is sought for 
creamery products, the street-car card is valuable. From 80 to 
90 per cent of all adults in a city ride in its street cars and they 
therefore have almost a perfect circulation. They are quite 
certain to be seen by all who ride, if they are well designed and 
printed; they are read with little effort at a time when there is 
leisure for reading them; every card has a fair chance to be read, 
and finally, they are usually the last advertisement seen by a 
shopper bound cityward on a buying expedition. They are 
especially valuable for emphasizing and repeating the trade 
name and the main selling points of an article. Street-car space 
is usually controlled by some large company that operates 
independently of the street railway company. Most of the car 
space in the United States and Canada is controlled by a single 
corporation. Through the controlling corporation attractive 
cards may be bought at a moderate price. The rates are fairly 
uniform and range from 40 to 50 cents per 11 X 21 card per 
month. 

IV. Circular Letters and Mailing Cards. — For an intimate 
presentation of a product to prospective customers, circular 
letters serve a purpose that no other medium can serve. That 
is especially true if the letters are well written and skillfully 
printed and carefully mailed. They are not suitable for general 
or indiscriminate circulation. To send letters to all the house- 
wives of a trade territory would be too expensive for most prod- 
ucts. But when through newspaper or magazine advertising, 
or through the cooperation of retail dealers or salesmen or 
satisfied customers, special lists of interested persons are se- 
cured, they may be circularized to advantage and at reasonable 
cost. General advertising brings the prospects, while the special 
advertising of the letter goes far toward convincing them. 
Through modern letter printing and addressing machines 



298 MANAGEMENT OE DAIRY PLANTS 

letters that have every semblance of being specially written to 
each individual are now prepared at moderate cost. Letter 
printing shops are found in most cities. Costs will vary with 
the quality of the work, approximating 2 or 3 cents per letter 
where a thousand or more are ordered, not including postage. 
Cheap, unattractive circular letters are rarely a good invest- 
ment. Mailing cards printed on attractive paper, sometimes 
in colors and with illustrations, are useful in calling attention to 
special propositions. They have good attention value and may 
be given deep interest value also. 

V. Booklets. — These serve much the same purpose as the 
circular letter. They are for "follow-up" use mainly and per- 
mit a more complete presentation of the merits of a product 
than is possible in other mediums. A booklet for a creamery 
business may well deal with the processes of manufacture in a 
popular way with emphasis on quality of materials, food values, 
and care in making and handling the product. Illustrations 
are of especial value in a booklet, especially those that tell a 
story that is to the point. Booklets are circulated in much the 
same way as letters and to much the same lists. They may 
also be distributed in the package or through retail dealers. 
Costs vary greatly with the character of the book and its 
make-up, but there is possible a booklet for every business, well 
within the limits of its advertising appropriation. 

VI. Novelties. — This heading includes many special forms 
of advertising, such as calenders, blotters, special display cards, 
gift articles, and the like. Their value varies. The calendar, if 
attractive enough, may prove to be an all-the-year reminder in 
office or home. Blotters, if sent regularly once or twice a month 
and each attractively printed with a newsy message of business 
interest, are a good reminder to have on a customer's desk. 
Gift novelties, like penholders, pencils, fans, drinking cups, 
canes, etc., carrying the business name of the donor, have 
some value, but not always a value equal to their cost. They 
are usually distributed under circumstances that make the 
distribution wasteful. If novelty advertising is purchased, it 
ought to be carefully purchased and as carefully distributed. 



, ADVERTISING DAIRY PRODUCTS 299 

VII. Exhibits and Demonstrations. — Food products are 
often excellently advertised through exhibits and demonstra- 
tions, particularly at pure food shows and in retail grocery 
stores. Such advertising, however, must always be Hnked up 
with other advertising and it is quite likely to be expensive. 
Smaller creameries are not likely to find it profitable to adopt 
this medium, except when special circumstances favor it. Ex- 
hibits and demonstrations take much time and usually require 
special men and women employees to set them up and conduct 

them. 

VIII. Programs, Directories, etc. — Programs and direct- 
ory advertising is of uncertain value. There ought to be a special 
reason for buying advertising space in such publications; most 
frequently that reason is ''policy." However, there is likely to 
be profit in theater program advertising of ice cream, which is 
usually in demand at the close of a performance, and perhaps 
of other dairy products. Theater curtains have similar value — 
probably even more, because they are more certain to get atten- 
tion. . 

IX. The Creamery Itself. — Although the creamery itself is 
primarily a manufacturing plant, it is also its own best adver- 
tisement. If it is well located, attractively built, neatly kept, it 
will get attention from many passers-by, arouse their interest, 
and help to convince them of the merit of the creamery's prod- 
ucts. As far as practicable, a creamery should keep a welcome 
sign out and even hold open house from time to time when 
visitors will be given special attention and perhaps a sampling 
of some new product or some old product made differently. 
Also, the manager of the plant will not find it amiss if on proper 
occasion he discusses pure food, or conservation, from his busi- 
ness standpoint, before public or semi-public gatherings. 

PLANNING AND WRITING THE ADVERTISEMENT 

Because three-fourths of the advertising prepared for a 
creamery business is likely to be prepared for a newspaper or 
other publication, the planning and writing of advertising will 



300 MANAGEMENT OP DAIRY PLANTS 

be discussed from that standpoint. However, what is said 
specifically from that standpoint may be applied generally to 
other forms of advertising. 

I. Fundamental Considerations. — An advertisement, if it 
is a real advertisement, is written to secure favorable action 
upon some proposition of the advertiser, usually to induce a pur- 
chase — to sell something. It is essential that this be always 
kept in mind by the writer of advertisements. 

It follows, then, that the writer of an advertisement must 
have a definite objective, the selling of a commodity, and a 
thorough understanding of that objective or commodity; also, 
he must understand how men and women may best be appealed 
to and influenced, and finally, he needs to know something 
about the advertising tools by which they may be influenced. 

II. Understand the Commodity. — It may seem superfluous 
to advise a creamery man to understand his product thoroughly 
before he undertakes to write an advertisement to sell it, yet 
this is true: It is one thing for him to understand it for himself 
and another to understand it so that he may make its merits 
clear to others. We often know things that we cannot readily 
explain. The writer of butter advertising, for example, should 
think over the merits of his butter, discover how and why it is 
different from and better than the common run of butter, and 
then write out brief, pointed statements covering these facts. 
Then he will know his butter definitely, not indefinitely; he will 
have a clear, not a hazy, understanding of it; he will have his 
talking and selling points — the material out of which an adver- 
tisement may be "built." 

III. Understand the Buying Public. — A good salesman 
never approaches a prospective customer without first learning 
all he can about him. A good ''ad" writer likewise seeks to 
know as much as he can about the people to whom his adver- 
tisement is addressed, for his is a selling task also. What are 
their likes and dislikes? What are their circumstances, finan- 
cially and otherwise? What emphasis do they put on quality 
or on price? What is their interest in considerations of food 
and health? Through these and many other questions create a 



ADVERTISING DAIRY PRODUCTS 3OI 

picture in the mind's eye of the people for whom the advertise- 
ment is intended and ability to reach them will be increased. A 
good deal of psychology is involved in this step. In fact, ad- 
vertising, like other kinds of salesmanship, has much to do with 
psychology and successful salesmen are good psychologists, 
either consciously or unconsciously. 

IV. Essential Steps in Advertising Appeal. — A successful 
advertisement accomplishes four things in reaching and influenc- 
ing the buying public: It gets attention; it arouses interest; it 
convinces, and it secures action. In other words, it makes 
people look, like, learn, and buy. The ad writer needs to keep 
these essentials in mind when he plans and writes his advertise- 
ment and to strive definitely to make it effective with respect 
to all of them. 

Attention, depends (a) upon the extent to which counter- 
attractions are eliminated or lessened — the less other advertis- 
ing competes with an advertisement and the more it is set off 
by itself, the more likely it is to get attention; (b) upon con- 
trast, which is secured by making an advertisement different 
from those around it — most ad writers learn what other adver- 
tisers are doing and then do something else; (c) upon the impres- 
sion it makes on the eye and then on the feelings; (d) upon the 
readiness with which it is understood in a single glance. 

Interest, which must develop out of attention if the adver- 
tisement is to do more than merely catch the eye for an instant, 
depends {a) upon the appearance of the advertisement and its 
surroundings — it must be inviting to the reader; (b) upon the 
promptness with which it may be understood — the reader 
should be able to gather quickly its most important message; 
(c) upon the way in which the reader is set to thinking about 
the things advertised — there must be a quick suggestion 
that the advertisement is worth his while for some reason or 
other. 

Conviction depends upon successful appeal to reason or to 
desire. 

Action is secured through direct or indirect suggestion or 
demand. 



302 MANAGEMENT OF DAIRY PLANTS 

V. The Materials and Tools of Advertising. — To ''build" 
an advertisement and give it these four essentials qualities, the 
ad writer uses space, type and borders, illustrations and lan- 
guage. They may be called the materials and tools of adver- 
tising. 

All four "materials and tools" are employed as follows to 
give attention value to an advertisement: 

Space. I. By using as large space as the appropriation per- 
mits. Large space gets attention because it is large; it lessens 
the counter-attraction of other advertisements; it permits of 
larger headlines, display type and illustrations, and better 
typographical effects. Experience shows that it is more prof- 
itable to use a given amount of space for a few large advertise- 
ments than many small ones. However, the value of frequency 
must not be overlooked. 

2. By securing space in the best positions. This is more im- 
portant with smaller advertisements. Nearness to live reading 
matter of the right kind is essential; space in the upper half of a 
page is usually better than in the lower half. 

3. By varying the form of space used to secure contrast. 
When most advertisements are square or nearly square, the 
long, single column advertisement has marked attention value. 
An oval or circle effect likewise secures contrast. 

4. By providing plenty of white space within the advertise- 
ment itself; an open arrangement is desirable, and a crowded 
space undesirable. 

5. By putting important head or key hues into type that is 
large and which is easily read (display). All capitals are not as 
legible as capitals and small letters (caps and lower case). 
Headline type measuring i/io to 1/20 of the height of the ad- 
vertisement is considered effective. Avoid the use of too many 
lines of large type (over display), for all emphasis is no empha- 
sis, but merely confusion. 

6. By selecting borders that catch the eye by setting off the 
advertisement and making it different, but which do not attract 
too much attention to themselves. Usually large advertisers 
design special borders and have them engraved. 



ADVERTISING DAIRY PRODUCTS S^S 

7. By using illustrations that are different and which may be 
understood readily and which print clearly. Illustrations have 
large attention value. 

8. By introducing unusual arrangements and forms of type 
and illustrations, ovals, circles, triangles, etc. But retain 

simplicity. t_ i. 1 -lu 1 

Interest value is given to an advertisement by the skilllul use 
of type and border, illustrations and language, as follows: 

Type and Borders, i. By making the typography (use of 
type and borders) pleasing. Type and border should harmon- 
ize with each other and type should harmonize with the subject- 
matter of the advertisement — for food products suggestmg 
daintiness and purity. Adhere to simplicity, avoid overcrowd- 
ing and involved designs and backgrounds. Keep plenty of 
white space within the ad. Maintain balance and syninietry. 
In short, make the appearance of the advertisement inviting to 
the eye and interest will follow. 

2. By using legible type that the eye may read with least 
effort. Interest will not develop when reading is difffcult. 

3. By using illustrations which are clear, which are in good 
taste, which really illustrate and which present a story that is 
readily understood. Let them show processes and portray ar- 
guments and stir human desires. Such illustrations give great 
interest value, save many words, and furnish short cuts to 
understanding. 

4. By use of headlines that carry the important, vital fact ot 
the advertisement's story — its best news. HeadUnes are first 
to be read; their impression must be favorable; they must 
deepen attention into interest. Headlines must be brief, lively, 
interesting, not more than four or five words, and be taken m 
readily by the eye in a single glance. 

5 By use of appeals and arguments in the body of the 
advertisement that are clear cut, straight to the point, and 
full of news about the product, making the reader thmk 
favorably of it. But what is written should be as brief as 

possible. . 

6. By making the advertisements timely and thus linking 



304 MANAGEMENT OF DAIRY PLANTS 

them up with other things already in the popular mind or in 
popular favor. 

Words. — Conviction and action are secured through the use 
of words almost wholly: 

1. By carefully planned appeal to the reason. The argu- 
ments in favor of the product should be carefully listed and 
arranged and then expressed forcibly and briefly, keeping in 
mind the reader, his way of thinking and his motives of action,, 

2. By skillful play upon desires and feelings through lan- 
guage, suggesting appetizing tastes, pleasing flavors, and 
healthful effects of good products. The reading of the adver- 
tisement should leave the readers with a desire for the product 
and an inchnation to go buy. 

3. By definitely suggesting or commanding action. After 
interest and conviction have been secured, the ad writer may in 
so many words say do this or do that. 

Type is made in an endless number of styles, but most com- 
posing rooms have only a limited variety. This is no handicap, 
however, providing the few are desirable from the standpoint of 
good taste, legibility, and attractiveness. Type sizes vary 
according to the ''point" system, a point being equivalent to 
one seventy-second part of an inch (approximately). The sizes 
are named according to the measurement of points between the 
topmost part of a capital letter and the lowest part of such a 
letter as ''g," for example. If that measurement is 12 points, 
the type size is ''12 point." The smallest size in common use is 
6 point; the largest, 72 point. Type lines are measured on the 
same basis, but with the pica, which equals 12 points, as the 
unit. Newspaper columns commonly measure 13 picas wide, 
although at present there is a trend toward a standard 12 1/2 
pica column. Type is said to be ''leaded" when thin metal 
strips (leads) are inserted between lines to make more white 
space and increase legibility. In the body matter of advertis- 
ing, 14 point, 12 point, 10 point, 8 point, and 6 point are most 
commonly used, especially the first three. On the average, 
matter set in 14 point will run about 10 words to the square 
inch, set solid (without leads); 12 point, solid, 14 words and 



ADVERTISING DAIRY PRODUCTS 305 

leaded, ii words; 10 point, solid, 20 words, and leaded, i6 
words. It is convenient to have in a scrapbook samples of the 
various sizes and styles of type that are available in the news- 
paper composing rooms that handle the advertising prepared. 

Illustrations for newspaper use are of two kinds, half tones 
and zinc etchings, both made by photographic processes. Half 
tones are most often made from photographs, from water-color 
drawings (wash drawings) in black, brown, or white. They may 
also be made from oil paintings and direct from smaller objects 
themselves. A half tone may be identified by the many small 
dots and squares which change the solid black or white surfaces 
into "tones " of black or white. These dots are introduced in 
the engraving process by photographing the original through 
a screen of fine lines, ranging from 65 per inch to 200 per inch. 
The screen is varied for different printing uses, and is coarse for 
rough uneven paper and fine for smoothly surfaced paper. 
Half tones are designated according to the screen used; for 
printing on newspapers printed on an ordinary print paper 
from stereotyped plates, 65 or sometimes 80 line or screen is 
most satisfactory; for newspapers printed direct from type and 
engravings on smoother paper, as fine as 100 line may be used; 
for booklets and catalogs as fine as 120 or 133 line may be used. 
Photographic copy for half tones should be clear and sharp. 
An engraving may be made larger or smaller than the original 
copy, to fit the advertising space desired. 

Zinc etchings are made from pen and ink line drawings. They 
contain no dots, not being made through a screen. They will 
print well on any kind of paper and in any kind of a press. They 
present only one difficulty, the expense of getting good original 
drawings. 

Language is the main reliance of advertising and the ad 
writer must know both what to say and how to say it. To 
know what to say he needs to understand his product; to know 
how to say it he needs to know the people to whom he is writing 
his advertisement and how words may be used to interest and 
convince them. 

What to say will depend a good deal upon the kind of an 



3o6 MANAGEMENT OF DAIRY PLANTS 

appeal that is to be made in the advertisement, whether to the 
reason ("reason why" advertisement) or to the feehngs ("hu- 
man interest " advertisement). For a "reason why " advertise- 
ment, hard facts as to quaUty, food values, process of manufac- 
ture, price, and the like are needed. For the "human interest " 
advertisement, such features of the product as its pleasing taste, 
its cleanHness, its healthfulness, its sweet odors, its appetizing 
appearance, its agreeable associations in use, and so on make 
the best material. For most advertisements some of each kind 
of facts or material will be required, for most advertisements 
combine "reason why" and human interest. Always the 
limits of the space available in advertising must be kept in mind 
and the facts or material subjected to what the newspaper man 
calls the "boiling down" process to eliminate everything that 
is not absolutely essential and helpful. 

How to present the talking points will depend in a measure 
upon the kind of people who are to be reached by the advertise- 
ment. What is written for women must be set forth in terms 
that they best understand and which catch their interest; it 
needs to be expressed in words that are familiar in women's 
activities. Likewise, what is written for men, or for rural 
people or for city people, needs to be expressed in terms that 
suit. But certain rules apply to all advertisement writings: 
Be brief, because the reader hasn't time for long discussion and 
the advertisement hasn't space for it. Be clear, because what is 
written will be read more or less hurriedly and must be corre- 
spondingly easy to understand. Be simple; avoid big words 
and high-sounding phrases; plain, everyday words are best; 
steer clear of the over-use of adjectives. Be forceful when it is 
essential to hammer home facts; straight talk from the shoulder 
is most effective. Be interesting; put life into every sentence. 
Make sentences short and paragraphs likewise; avoid every 
impression of long-windedness. Be fair and moderate in state- 
ment; do not claim too much, for people are suspicious of 
wholesale claims. Be honest; that is always the best policy. 

VI. Writing the Advertisement. — Every writer of adver- 
tisement works out his own plan of procedure sooner or later, 



ADVERTISING DAIRY PRODUCTS 307 

SO what is offered here is merely suggestive. However, it is sub- 
stantially the plan followed by one successful ad writer. 

1. Fix a purpose for the advertisement. Don't set out with 
merely a hazy notion of what is to be accomplished ; have a 
clear-cut understanding on that score, or else the advertisement 
is not likely to interest or convince any one. Whether it is to 
sell something at once, or create good will for a product, or to 
educate the pubHc to its merits, or something else, determine 
the purpose definitely. 

2. Determine the mode of appeal. Settle whether it is to be 
to reason, to human interest or to both. Your ad writing will 
be done more or less aimlessly unless you take this step. 

3. Select your talking points. Make a hst of all the points 
that may be urged in making your appeal. Study them care- 
fully to make sure that they are worth while; cut out all that are 
weak; combine some; rearrange them in order, according to 
interest or importance, or logical sequence. 

4. Determine how much space is to be used. Unless the ad 
writer knows whether he is to have 6 inches double column 
space or 5 inches single column or a half page, he cannot prepare 
his copy correctly. 

5. Outhne this space on paper and locate the typographical 
features of the advertisement. If an illustration is to be used, 
sketch its exact outlines in the available space, or better, paste a 
proof of it on the location that is best. Sketch out a location for 
the trade-mark or trade name. Determine how much space the 
headline should occupy and where. Then outline the space 
that the body or text of the advertisement is to occupy and 
estimate how many words of matter can be put into that space. 
Your complete sketch should give you a good idea of what your 
advertisement will look like in print. 

6. Write the copy to fit the space. Sometimes the headlines 
may be written first, sometimes last. Choose the newsiest or 
most important feature of your talking points, or the feature 
with most attention-getting power, for your key line. Put it 
into the fewest possible number of words. Write it and rewrite 
it to make sure that it is effective. Write the text of the adver- 



3o8 MANAGEMENT OF DAIRY PLANTS 

tisement from the list of talking points prepared earlier. Then 
study the result carefully, make careful criticisms, estimate its 
probable effect on the reader, and then rewrite. Two or three 
rewritings are none too many for a worth-while advertisement. 
This writing and rewriting should, of course, be done on sepa- 
rate sheets of paper; the final result may be numbered to indi- 
cate its location in the outline of the advertisement. 

7. Secure the cooperation of the printer to get into type the 
kind of an advertisement you have planned. The printer can 
help make or mar the ad writer's work. Arrange for proofs so 
that you may be assured that the advertisement you planned is 
really worked out in type. Better pay extra for the privilege 
of tearing down and rebuilding than to have an unsatisfactory 
advertisement go into circulation. 

VII. An Advertising Scrapbook. — Such a book, filled with 
clippings of advertising material, will prove invaluable to the 
ad writer. It should contain examples of different uses of 
typography to get attention and interest, of different methods 
of using illustrations, of effective key lines, of well-written 
arguments or descriptions or other appeals, of various type 
faces and type sizes, short articles bearing on advertising, 
clipped from trade or advertising journals, and such other 
matter as may prove useful. 



CHAPTER XXII 

BUSINESS CORRESPONDENCE 

Business is annually transacted between firms and indi- 
viduals who have never come in personal contact with each 
other. They have become acquainted and started a business 
relation with each other entirely through correspondence. A 
business house writes frequently to its customers and may 
possibly write from twenty to a hundred letters for each time 
its representatives have the opportunity of calling in person. 
It is therefore evident that the letter is one of the big factors in 
business. It is of as great importance, or even greater, that a 
business letter be considered as a credit to the institution where 
it originated as that a call be made by the proper representative. 
The latter will make only a short call and should the impression 
he made be unfavorable, the effect therefrom may gradually die 
away and be forgotten. The letter, however, becomes the 
property of the one to whom it was addressed and if it creates an 
unfavorable impression it reflects on the firm even more force- 
fully and will continue to convey the same impression at least 
as long as it remains in the possession of its recipient. Such a 
letter may not merely prevent an immediate sale, but sales for 
a period of years. 

A. THE APPEARANCE OF LETTER 

I. Stationery. — The stationery selected by a firm should at 
least not be out of harmony with the business of the company. 
A dairy firm should select paper of good quality. It cannot any 
more afford to write letters on poor, cheap-appearing stationery 
than it can afford to send its salesman out in cheap and shabby 
clothing. 

.309 



3IO MANAGEMENT OF DAIRY PLANTS 

The color of stationery should be given attention. A white 
color is always safe; other colors should be selected with cau- 
tion. A dealer in whole milk, cream, or butter would prefer 
a color significant of a product that is rich and of high quality. 
A cream color might be a yery suggestive color for a dairyman 
to select. However, a cream color should not be confused with 
an orange color or even a lemon color; it should be more deli- 
cate. Unless a satisfactory color can be obtained it would seem 
safer to stay by the white. 

Business stationery should bear the name and full address of 
the firm or individual. Other information which may properly 
be used in a letterhead includes the names of firm officers, 
telephone numbers, cable address, and capital stock of the firm. 
Manufacturers often add an illustration of the plant. This is 
usually for the purpose of impressing the recipient with the 
magnitude of their business and thereby also make the impres- 
sion of reliability. A building should never be used for the 
letterhead by a firm occupying only a small part thereof unless 
the building bears the name of the firm using it. The space on 
side margins of the paper should not be used for printed matter. 
Engraved or lithographic stationery is to be preferred to printed. 
But if printed stationery is used it should be of high class. A 
letterhead should never be used for second sheet, but a blank 
sheet of the same size and of the same paper stock as the first 
sheet. 

II. Color of Ink. — Black is the safest color to use; however, 
other colors such as blue, green, etc., are used more or less. 
Blue was formerly much favored for typewritten letters, but 
black ink is gradually taking the place of all others. Various 
colored inks, even red, have been used by writers of letters for 
signatures, but also for that purpose the black ink is most 
satisfactory. 

III. The Envelope. — The envelope should be of same 
paper stock as the letter paper. It should have the return 
address in the upper left-hand corner. The address should be 
plainly and neatly written. This is of particular importance 
when the letter is written to an individual or to a smaller firm 



BUSINESS CORRESPONDENCE 31I 

where the owner or manager opens the letters himself. The 
size of the regular commercial envelope is about 3 3/4 inches X 
6 1/2 inches. 

The open-faced envelope is used quite extensively for mailing 
bills, thereby saving the labor of addressing the envelope. It 
may be very useful for such purposes even though many are 
opposed to receiving a letter, the outside appearance of which 
indicates that a bill is contained within. This is particularly 
true in reference to individuals and it is the safer policy not to 
adopt the open-faced envelope for other purposes than for 
mailing statements and bills to firms. The open-faced en- 
velope is not well suited for business correspondence, as it 
necessitates the folding of the paper in a very inconvenient 
and inattractive way. Moreover, as the outside appearance is 
against such a letter, it will not receive as hearty a welcome as 
will a letter appearing in more attractive clothing. 

IV. Proper Proportioning of Letter on Sheet. — The letter 
should be so written that it is properly proportioned on the sheet; 
that is, the white margin at the bottom should be practically 
the same as the white margin at the top or a little wider. Like- 
wise, the margin at the two sides of the letter should be the same 
and the right-hand margin should be made as regular as pos- 
sible. The body of the letter should also be divided into short 
paragraphs, as that makes the letter more readable and more 
pleasing to the eye. 

V. Folding the Letter. — In folding the letter two folds are 
considered, the long and the short fold, to conform with the 
size of envelope used. The long fold is used for the long en- 
velope and the short fold for the short or regular size com- 
mercial envelope. When using the long fold the sheet is folded 
twice, the upper part of the letter overlapping; the letter thus 
folded will open most conveniently to the one who reads it. 
When adopting the short fold the first fold is made from the 
bottom of the sheet leaving a top margin of about one inch. 
This is for the purpose of having the name of the firm in plain 
view of the reader before the sheet has been fully unfolded, but 
it also makes the unfolding of the letter easier to the one who 



312 MANAGEMENT OF DAIRY PLANTS 

opens the mail. The second and third folds should be made 
about equal and should be neatly done. 

VI. Letter Mailed to the Consumer. — A dairy carrying on 
a retail business will often send letters to individual homes in the 
city. Such letters may be sent merely for advertising purposes, 
but the lady of the house will usually receive them and the ap- 
pearance of the letter should therefore be such that it will appeal 
to her. A letter written on business stationery would not re- 
ceive her attention. If such letters are written on high-grade 
stationery similar to that used for social correspondence they 
will be more appreciated. Such stationery may be absolutely 
plain. If desirable to have the return address on the envelope 
then it may be placed in the upper left-hand corner of the front 
or preferably on the back of the envelope. The type should be 
small and the printing most neatly done. 

B. PARTS OF A LETTER 

A business letter is made up of the following parts: 

The Heading. 

The Introduction. 

The Salutation. 

The Body of the Letter. 

The Complimentary Close. 

The Signature. 

I. The Heading. — The heading is first to be considered 
and includes the name of the place from which the letter was 
sent and the date of writing. If necessary the street and room 
number may also be given. The heading is placed at the upper 
right-hand corner immediately below the letterhead. Some 
place it nearer the center. In a social letter it is often reserved 
until last. 

II. The Introduction. — The introduction or inside address 
is composed of the name of the person or firm to whom the 
letter is written, street number, city and state. It is placed at 
the beginning of the communication or, if in the social form, at 



BUSINESS CORRESPONDENCE , 313 

the lower left-hand corner of the sheet and then includes only 
name and address. The latter style may be considered as the 
stronger. The reader is able to get into the subject-matter of 
the letter without any loss of time, which appeals to the busy 

man. 

A business letter intended for a business firm should always 
be addressed to the firm itself and not to an individual member 
or to some employee of the firm. When it is addressed to an 
individual it becomes a personal letter and if the person to 
whom it is addressed is absent for some time the letter may 
be left until he returns, whereas it would receive prompt atten- 
tion if addressed to the firm. If the writer desires that his let- 
ter be brought to the attention of some certain person of the 
firm, then the inside address may call for the attention of that 
particular person as follows: 

The Creamery Co., 

720 Ave. 

Attention of Mr. J. C. Smith. 

III. The Salutation. — The salutation depends much upon 
the subject-matter of the letter, the rank of the person to whom 
it is written, and the acquaintance of the parties concerned. ^ If 
writing to individuals, a business letter starts with "Dear Sir " 
or ''Dear Madam " and with "Gentlemen" if writing to a firm. 
The form, "My Dear Sir," is often used in business and may be 
considered very good, however, the former is the safer to use. 
All words in the salutation may be capitalized. Some writers, 
however, capitalize only the first word. The salutation is 
followed by a colon. 

The more personal form of salutation, as in "Mr. Brown " or 
"Dear Mr. Brown," appeals to many people. It makes the 
reader of the letter feel as if there is a more intimate relation 
between him and the writer and that form is often preferable, 
especiallv so if the two persons are acquainted. 

IV. The Body of the Letter. — The body of the letter may 
begin upon the same line as the salutation or, as is most fre- 
quently done, on the next line below. The body of the letter is 



314 • MANAGEMENT OF DAIRY PLANTS 

that part which contains the real thought and substance. It is 
only that business letter which is full of good thoughts and ideas 
that is worth while writing. The other kind may just as well 
not be written, for it gains no friends, creates no new business, 
and may even be a business loser. It is well, especially for the 
beginner, to study each letter before delivering it to the mail. 
Single out the strong parts of the letter as well as the weak 
parts and the entirely superfluous parts. Such analysis may 
often reveal the fact that the letter is of no value and should be 
rewritten. 

A letter which answers the purpose for which it is intended 
must present the thought which the writer wants to convey in 
such a way that the reader takes an interest therein and feels 
that the writer is telling something that is of value to know. 
It is therefore to the writer's interest first to make clear to him- 
self how best to present his subject so that it will appeal to the 
reader and appear of interest to him. 

The very first sentence of the letter should arouse interest, 
but often the beginning of a letter is the weaker part. It should 
never begin with '' I " or " we " as ''We are pleased to inform you 
that we will be in a position to manufacture all kinds of fancy 
ice creams beginning May ist and we most earnestly solicit 
your patronage, etc." This information might be of some inter- 
est to a party owning a financial interest in this particular ice 
cream factory, but not to a customer and even less to the one 
who has never purchased ice cream from that factory. The 
writer should endeavor to place himself in the background 
and the one addressed in the foreground. It would appeal 
more to a woman if it could be shown to her that this letter 
were written entirely for her benefit. A letter such as the fol- 
lowing comes nearer meeting this requirement. 

" Dear Madam: You always desire to have for your parties 
an ice cream which is somewhat different from that served by 
your neighbors. If you consider that we can assist you in this 
matter then we should be glad to have you call us over the 
phone at any time. We are just equipping our factory for 



BUSINESS CORRESPONDENCE 315 

taking care of special orders and shall endeavor to keep the 
quality of our product up to your expectation." 

A letter is often started as follows: "We have your favor of 
the fifth inst., etc.," or ''Relying to your favor of August 6th, 
etc." Such may be satisfactory for a certain kind of corre- 
spondence when it serves as a connecting link between this and 
a letter just received, but for a selling letter such a beginning is 
rather weak. The letter becomes stronger if beginning at once 
with the subject-matter; at the close of the letter the statement 
may be made, ''This is in reply to your favor of August 6th." 

A letter should be simple and clear so the meaning thereof 
is readily understood by the reader. Long words should be 
avoided, short Anglo-Saxon words are always the most em- 
phatic. Technical words and terms should never be used unless 
a technical subject is treated and the letter is written to some 
one who is technically trained. 

Good tact and judgment are essentials in business corre- 
spondence. A letter that answers its purpose should always 
make the reader feel somewhat more friendly toward the writer 
or the firm from which it came. A letter which cannot accom- 
plish that is either of no value or it may prove to be injurious. 
The following letter is one of the latter type. 

'' Dear Sir: We have your favor of recent date asking for a 
subscription for the erection of your new lodge hall. 

'' We hardly consider that we should be called upon by your 
members for a donation, as the members of our firm all belong 
to the Greenview Lodge and help to pay for the upkeep of same; 
however, we like to see you meet with success and inclose here- 
with ten dollars as our donation. 

" Yours truly " 

The writer of the above letter should first have decided in his 
own mind as to whether or not the cause was a worthy one, 
whether or not he could afford to make a donation, and possibly 
also the advertising value of such a donation. If he decided to 
make the donation he should endeavor to go on record as a 



3l6 MANAGEMENT OF DAIRY PLANTS 

willing and cheerful giver instead of critizicing the organiza- 
tion for calling for support. As the letter now reads the re- 
ceivers of the donation are made to feel that they would rather 
have been without his support. The letter might have been 
written in such a spirit that it would have been appreciated 
as much as the donation it contained, and the friendly feeling 
thus created be of much value even from a business point of 
view. 

More objectionable, however, are letters that contain sar- 
casm or unfriendly remarks. At times a correspondent will 
receive such a letter and will possibly take pleasure in using 
similar terms for reply, but if these matters are given due con- 
sideration it is readily understood that such a letter is always 
injurious to a business concern as well as to an individual. 
It is therefore a safe policy for any correspondent to keep letters 
written in an angry mood on his desk until the following day. 
They should then be reread and analyzed and should be re- 
written if they will not tend toward creating a more friendly 
feeling between the writer and the addressee. It should al- 
ways be borne in mind that there is nothing which will humil- 
iate the writer of a sarcastic letter more than to receive a kind 
and friendly letter in return. 

The volume of business and character of business done by 
the firm to whom the letter is addressed and even more the 
individuality of the one who acts on the letter, if such is known, 
should be important guides for the writer. It at times appeals 
to the reader if his name is embodied in the letter, as ''We be- 
lieve you are aware, Mr. Smith, that our firm appreciates your 
business very much, etc." The busy man wants a short letter 
full of facts and information. The one who receives but few 
letters will often take time to read a long letter and enjoy it. 
It is the safest policy, however, to make a business letter brief 
without sacrificing any of the essentials. 

Often a direct question is asked in a letter. It is convenient 
to the writer to receive the reply to the question on the same 
letter and a request should be made when closing the letter 
asking a reply be made on the back of the letter. 



BUSINESS CORRESPONDENCE 317 

V. The Complimentary Close. — The complimentary close 
mostly adopted by the American business men is either "Yours 
truly " or "Yours respectfully." The first word of the compli- 
mentary close should be capitalized and it should be written on 
the line below the last one of the body of the letter. 

VI. The Signature. — The signature should be written 
plainly so it may readily be read. It should preferably be 
written in black ink. 



C. THE FORM LETTER 

The form letter is often used by the creamery manager for the 
purpose of furnishing general information to patrons or custom- 
ers. It is commonly used to acknowledge receipt of a ship- 
ment from a new patron. Such a letter will also furnish infor- 
mation in reference to the company's system of paying and 
other information as may be desired by the patron. Many 
general questions are asked which may be answered to greater 
or less extent through form letters. 

For selling goods or purchasing cream the form letter has 
been an important factor. A series of letters is prepared, one 
supposed to follow the other at proper intervals. Such letters 
should be prepared systematically, gradually bringing the 
receiver up to the point when his desire to do business with the 
firm becomes strong enough so it leads him to action. When- 
ever a reply has been received to one of the letters the form 
letter has answered its purpose and a personal letter should 
follow. 

When using the form letter it is taken for granted that the 
same desires exist in the minds of all and that the same argu- 
ments will appeal to all alike. A form letter that sells and buys 
goods must contain good arguments presented in an interesting 
way. When writing a form letter it is well to have several 
written and to test them out by mailing a certain number of 
each and noting the per cent of replies obtained from each. 

A form letter should not merely contain strong arguments, 
but it should also be neatly written and properly signed so it 



31 8 MANAGEMENT OF DAIRY PLANTS 

will not have the appearance of a form letter, for it is the per- 
sonal touch given to a letter that makes it valuable and of 
interest to the one who reads it. 

Records of form letters are most readily kept on cards filed 
away in alphabetical order in a special file. When a reply has 
been received to one of the form letters the corresponding card 
will be removed to another file and should this person later be- 
come a customer the card will be filed among the cards of ac- 
tive customers. 

D. FILING OF CORRESPONDENCE 

A creamery handling a comparatively small amount of mail 
may conveniently use a small filing case in which the corre- 
spondence is filed alphabetically. This system, however, be- 
comes impossible in a larger business, and the vertical drawer 
files then become the most useful. The letters are filed away in 
folders of standard size, 9 s/Sy, n 7/8 inches with 3/4 inch 
projecting tabs. The letters may be filed in alphabetical order, 
geographically, or numerically. The alphabetical order may be 
considered as being the simplest. This is, however, less con- 
venient for some of the other departments, such as the sales 
and credit departments, for which the geographical system of 
filing has .its advantages. The letter folders may be filed in 
numerical order, but if that system is employed then an index 
reference card file will be required. The cards of such a file are 
placed alphabetically or geographically and refer to number of 
folder. 

Business correspondence should be transferred about once a 
year. For transfer files cheap vertical files may be used and the 
correspondence should be filed away in them so as to correspond 
to the general system of the office. 



CHAPTER XXIII 
CREDITS AND COLLECTIONS 

A. THE CREDIT MAN 

The concern selling goods on the credit system to other 
concerns or to individuals should be in a position to form an 
opinion of, or to obtain reliable information as to, the responsi- 
biUty of the purchasers in question. Such information is 
suppHed to the sales department by the credit man. It matters 
not whether the firm has a separately estabhshed credit de- 
partment, the credit man may be the creamery manager who, 
as in a small plant, may also be the butter maker, but a credit 
man must necessarily be there. If he is omitted, the business 
concern must in safety confine its sales only to cash sales. 

The ability of the man who is to pass on credits is a big factor 
in the successful operation of any large business. In general 
business is based upon credit; only few concerns can pay cash 
for all purchases. Therefore a credit man who can safely allow 
credit to 99 per cent of the people entitled thereto will be of 
greater value to his firm than the one who is allowing credit to 
only 95 per cent. 

The credit man should have a knowledge of the general finan- 
cial conditions and of the factors affecting such conditions. 
If a labor strike is started in a certain locahty he should be able 
to determine the effect of such a strike on the responsibility of 
firms in that locality with which he may be doing business. 
Depression will always follow a crop failure, therefore in a dis- 
trict where a crop failure has been experienced it may be advis- 
able to take special precautions and decrease the amount of 
credit allowed, whereas more liberal credit may be allowed in 
sections where the crops have been exceptionally good. 

Full information should be obtained in reference to the 

319 



320 MANAGEMENT OF DAIRY PLANTS 

financial responsibility of all prospective customers before the 
salesman makes any attempt to sell them goods. The retail 
merchant should carefully watch the changing about of people 
in his community and should investigate the responsibility of 
newcomers without delay. 

B. FACTS UPON WHICH THE CREDIT MAN 
BASES HIS JUDGMENT 

I. Commercial Agencies' Reports. — The Bradstreet and 
Dun agencies are considered the most important sources from 
which to receive credit information. For a stipulated sub- 
scription fee a firm can secure the reports which come in book 
form. These give the ratings of all established business firms 
and the amount of capital stock that would serve as a fair 
estimate for credit. They furthermore give their ratings as 
first, second, and third class. A firm obtaining a first rating 
should be a good risk if the credit is based on the stated amount 
of capital stock. The one obtaining a second rating is supposed 
to be of less responsibility, is often known to be slow at paying 
bills. The one obtaining a third rating cannot as a rule be con- 
sidered to be a subject deserving of extensive credit. 

In addition to this report these agencies are also at all times 
ready to furnish confidential information to their subscribers 
concerning more recently established firms not reported in their 
regular report or about firms reported but on which a more 
complete report may be desired. For such confidential reports 
or for part of them a small charge is made. 

Local credit interchange bureaus are found in nearly all 
cities and are known by various names. Such are often asso- 
ciated with a national association. These organizations are all 
formed for the purpose of interchanging credit information. If 
a member of such an association desires to obtain information 
with reference to a certain firm, then he merely turns in a re- 
quest for information to the bureau and usually within a day's 
time a report is furnished to the inquiring member as well as to 
the members who furnished the information. This report 



CREDITS AND COLLECTIONS 32 1 

usually states the number of merchants furnishing the infor- 
mation, amount due to such merchants, amount past due, etc. 
In addition thereto is also furnished opinions of members in ref- 
erence to whether the firm in question is considered to be prompt 
pay, medium pay, slow pay, poor pay, or if buying on cash basis. 

Members of credit bureaus at times agree not to force a col- 
lection from a firm which is financially embarrassed but to re- 
port the condition of such a firm immediately to the secretary of 
the bureau who in that capacity acts as a representative of all 
members doing business with said firm. Members interested 
send a certified statement to the secretary, who will collect the 
money or as much thereof as possible, which amount is pro- 
rated among such creditors. 

The Credit Men's Association is an organization found in 
nearly all cities. The membership is usually composed of one 
representative from each wholesale house of the city. This 
organization may or may not be associated with a national 
association. The members meet at more or less frequent inter- 
vals for the purpose of exchanging information in regard to 
their experience with various creditors. 

Retail Men's Credit Associations are found in nearly all 
cities and in most towns and may or may not be associated with 
national organizations. The members of these associations are 
the retail merchants or their representatives. They organize 
for the purpose of obtaining reliable credit information; some 
such associations also collect accounts for their members, and 
some publish a book once a year with a key to each individual's 
rating. 

There are a number of other sources through which credit 
information may be obtained. Some private concerns furnish 
information and often the bankers are referred to for credit 
information. The latter, however, are often opposed to fur- 
nishing such and whenever they do it is done as a matter of 
accommodation. 

II. The Firm's Own Records. — Records of the firm's for- 
mer dealings with the merchant who applies for credit ofTer 
another important source of information. It will not be safe, 



32 2 , MANAGEMENT OF DAIRY PLANTS 

however, for a firm to allow such a record to be the only source 
of information upon which to determine his worthiness for 
credit, if such information is not recent. 

III. Reports of Other Merchants. — This information is 
obtained by securing from the applicant the names of other 
firms from which he is buying goods. The credit man after 
obtaining such information writes to the credit men of these 
firms for their opinion in regard to the responsibility of the party 
in question. 

IV. Financial Statement of Firm Represented by the 
Applicant. — Any firm or individual asking for extensive credit 
should be willing to present a financial statement. Such state- 
ment should be signed by the proper official or party in order 
that it may be of real value. This statement is one of the more 
valuable parts of the credit information, as it sets forth the 
financial condition of the concern. Such a signed statement 
when received is filed together with other credit information in 
reference to the applicant. 

V. Financial Responsibility of the Individuals of the 
Firm. — If a corporation, this may not be of much value, as the 
liability of the individual is limited. It is, however, of much 
value when it concerns a copartnership, as in such any one of 
the partners can be held liable to the full extent of the indebted- 
ness. 

VI. Character of the Individuals that Own and Operate 
the Firm's Business. — An honest man with limited means is 
always a better credit risk than one who is dishonest, even 
though the latter may be in possession of unlimited means. The 
one who is honest and in possession of sufficient determination 
and a strong moral character will always be able to demand 
the limit of credit, whereas the one who lacks either of these 
qualifications will be considered with a certain degree of sus- 
picion. 

VII. Business Experience and Ability of the Applicant. — 
The person or persons responsible for the outcome of the busi- 
ness should have experience in that particular business. If 
such persons have been successful previously in a similar line of 



CREDITS AND COLLECTIONS 323 

business it is reasonable to suppose that they should again be 
able to meet with success. It is also well to note if those re- 
sponsible for the business give it their personal attention and if 
they looked pleased or worried. A business manager who looks 
worried should be watched carefully if credit is extended to 
him. 

VIII. Appearance of the Business. — A creamery doing 
business with retail firms should have representatives call on 
the retailers at various times. When making such calls the 
representative should be able to make a fair report to the credit 
man of the firm in reference to the appearance of the business. 
Such a report should furnish the following information: 

Amount of stock kept in the retail store. If there has been an 
increase or a decrease since the former time when the represent- 
ative called. The kind of stock kept, whether or not it is com- 
posed of staple or unstaple articles. The retail dealer who is 
dealing in such goods as can readily be turned into cash is al- 
ways a safer man for credit than the one who is handling prod- 
ucts of a less staple nature. 

The amount of business transacted should also be considered, 
as well as whether such business is done on a credit or cash 
basis. If on credit it is well to consider the responsibility of the 
class of people to whom credit is extended as well as the fre- 
quency and method of making collections. 

C. OFFICE RECORDS OF CREDIT INFORMATION 

I. Filing of Credit Information. — Credit information ob- 
tained through various sources should be so filed that it may be 
available when needed. It is most convenient to have a letter 
folder for each person or firm on which credit information has 
been secured and all information obtained is filed in this folder. 
The folders may be filed geographically and alphabetically as 
in the system recommended for filing under salesmanship. The 
geographical system of filing is most serviceable, as it thereby 
becomes more convenient for the salesman when looking up 
information as to the responsibility of merchants in a certain 



324 MANAGEMENT OF DAIRY PLANTS 

territory. It is also possible that a certain territory may suffer, 
due to crop failures, labor strikes, or similar causes. It there- 
fore becomes necessary for the credit man to make a thorough 
study and investigation of the firms so affected, and then the 
geographical system becomes the most useful as well as the 
safest. 

II. Credit Information for the Salesman. — The salesman 
should always be supplied with the most recent credit informa- 
tion about his customers. Such is most conveniently kept by 
him on cards filed away in a suitable, compact case. It may be 
convenient for him to divide his territory into different sec- 
tions each having a separate file and thus making it unnec- 
essary to carry a more bulky card file. 

III. Credit Information for the Order Clerk. — The order 
clerk is also supplied with credit information to the extent that 
he knows whether to allow credit or to demand cash for goods 
sold. If the creamery is doing both a city and an out-of-town 
business then it may be most convenient to have two card 
files, one for city customers and the other for out-of-town cus- 
tomers. It is most convenient that such credit cards be filed 
alphabetically. All the information of value to the order clerk 
is the correct name and address of firm, nature of business, 
credit or cash. If credit, the amount of credit should be stated; 
if cash should be demanded before the goods are delivered then 
C. O. D. may be marked across the face of the card. It is ad- 
visable that this credit file be kept as complete as possible, con- 
taining not merely information pertaining to present customers, 
but also to such as may become customers within the near 
future. It is always pleasing to a new customer to obtain credit 
without having to make application therefor. 



CREDITS AND COLLECTIONS 325 

FORM XXVII 

The Order Clerk's Credit Card 

Name of Firm 

Street Address 

City or Town 

State 

Nature of Business 

Credit or C. O. D 

Amount of Credit Allowed 

Date 

The ledger contains the most recent and most rehable credit 
information available. It is convenient, especially in a larger 
business, to have the amount of credit allowed marked on the 
ledger leaf in such a way that the meaning thereof may not be 
understood by any except the regular ofhce employees. It has 
the advantage that if a firm should take more credit than it 
is entitled to, then the bookkeeper can at once call the atten- 
tion of the credit man thereto. 

D. COLLECTIONS 

A business firm will establish its own terms on which its goods 
are to be sold. Such terms should be fair to the buyer as well 
as to the seller. The terms should also be fully explained to the 
customers in order to eliminate all misunderstandings. After 
the terms have once been established the firm should enforce 
them to the best of its ability. An organization that is always 
collecting its accounts on a definite, prearranged time will 
have less difficulty in obtaining prompt pa3Tnents than a firm 
making its collections at irregular inter\'als. By being prompt 
in making collections the debtor involuntarily comes to realize 
that it is just as important that the account is paid on time 
as it is that he receives the goods on time. 

I. Frequency of Making Collections. — The frequency of 
collecting bills is governed to some extent by the adopted cus- 
toms of other merchants; however, such customs may in part be 
ignored. It is customary in most cities to collect weekly for 



326 MANAGEMENT OF DAIRY PLANTS 

butter and cheese sold in the home city or town, whereas for 
butter or cheese shipped out collections are often made every 
other week. Butter and cheese are retailed mostly through the 
grocery stores. Such business may be considered to be fairly 
permanent and accompanied by less risk on account of uncol- 
lectible accounts. Ice cream is to a greater extent sold to 
retailers whose business is of a less permanent character. Sev- 
eral will remain in business for only one season or even less. 
They may also in general be considered as a class of business 
men not w^orthy of as much credit as the retail grocer, and there- 
fore it is the usual custom to sell to many of them for cash and 
it is seldom that more than one week's credit is allowed, regard- 
less of whether the sales are local or not. The manufacturer of 
ice cream is justified in collecting promptly, as ice cream is a 
commodity which is sold by the retailer for cash within twelve 
or forty-eight hours after it has been received. Where milk is 
sold at retail on the ticket system it is often sold on a cash basis 
or up to a month's credit may be allowed. 

II. Delinquent Customers, — Delinquent customers may be 
divided into four classes, ''careless, chronically slow, temporarily 
hard up, and insolvent." The careless customer may become 
prompt by insisting on receiving prompt pay. It is advisable 
when presenting a statement to a customer that it shows plainly 
the balance (Form XXIII), as this will continually remind the 
customer of his delinquency. ' The credit man is continually 
making comparisons between the figures of the amount carried 
over and that indicating his purchases not yet past due. The 
merchant who always carries a past due balance is less desirable 
as a customer unless he becomes more prompt in meeting his 
obligations and it is the duty of the credit man to cause such a 
customer to become prompt without thereby losing his busi- 
ness. The one who is careless about paying his bills is also apt 
to be careless in many other respects and cannot very often be 
considered a safe risk. The one Avho is chronically slow may 
be very careful about his business affairs, is often a good money- 
maker, but one who will rather receive money than pay it out. 
The customer who is temporarily hard up often deserves the 



CREDITS AND COLLECTIONS 327 

leniency of the merchant who sells him goods. By being properly 
supported by the creditors such a debtor will usually be able to 
readjust his financial affairs so that he in time will be able to 
pay his creditors in full. The insolvent debtor is the one whose 
property will not pay his liabilities. A firm may actually be 
insolvent long before it becomes an acknowledged fact and 
accounts may be collected. Payments will become suspended 
after it becomes an acknowledged fact that the debtor is insol- 
vent. 

III. The Collector. — The collector is an important assist- 
ant to the credit man. He should always pay strict attention 
to the appearance of the business of his firm's debtors and 
should therefore have a fair understanding of the value of goods. 
If the debtor is not ready to pay the bill when presented, then 
the collector should in a judicial manner secure information as 
to the exact time when payment may be expected. The col- 
lector will then make the necessary memorandum and this 
should be followed up by his calling on the debtor on the partic- 
ular day, and if possible a definite hour, when the payment of 
the bill has been promised. Should the debtor fail to pay this 
time it should be expected that he will present a satisfactory 
reason for his delinquency. 

IV. Collecting by Correspondence. — It is of greatest im- 
portance that statements be rendered at regular and definite 
times. If two weeks' credit is allowed then statements should 
be mailed every two weeks, leaving on the same mail each time. 
It should be definitely agreed upon between creditor and 
debtor that remittance should be forthcoming within a certain 
number of days after the date of statement. If the statement 
is dated on Monday of the week, most creameries will expect 
remittance not later than Friday of the same week. If remit- 
tance is not received by that time another statement should be 
mailed the following morning. If remittance is not received 
within a reasonable time after the second statement, then a 
third statement may be rendered, bearing a footnote calling the 
debtor's attention to the delinquency of the account and ad- 
vising him that unless paid within a certain time a sight draft 



328 MANAGEMENT OF DAIRY PLANTS 

will be sent through his bank. Such a footnote may be placed 
by using a rubber stamp and may be worded as follows: "If 

remittance is not received before then we take it for 

granted that you prefer to have us draw on you for the amount." 
If remittance does not follow, a sight draft should be made 
out at the time specified. This is turned in to the bank for col- 
lection. It is preferable that a sight draft be made out through 
the bank at which the debtor has his deposit, as the debtor will 
be less liable to give an evasive answer. If a sight draft is not 
honored, a good heart-to-heart letter will often bring about the 
desired result, but if not, it may be necessary to resort to other 
means for making the collection. Possibly a local attorney or 
some collecting agency may be most successful in bringing 
about a speedy settlement. 

V. Collecting Agencies. — Collecting agencies are estab- 
lished in some cities for the purpose of collecting accounts. 
Such agencies are mostly employed by the retail dealers. Some 
are organized in connection with their associations such as have 
been mentioned in connection with Retail Men's Credit Asso- 
ciation. Others are private concerns. Some retail merchants 
will turn all their accounts over to such agencies for collection. 
The claims made in favor of collecting agencies are that they 
make the collections at less cost than is possible if made by the 
individual merchants, and that they are better trained as col- 
lectors and as a result less money is lost due to bad accounts. 
Arguments against this system of collecting may be based on the 
ground that if he adopts it then he will not be in as close touch 
with his customers and that the collector is not working directly 
under the merchant for whom he collects and may therefore 
adopt means for collecting which would not be approved by 
the seller. Furthermore some customers are opposed to having 
a collector employed by a collecting ageacy call, as such are 
often known to be employed for collecting bad debts. 

For collecting bad accounts a local collecting agency will 
often prove to be very efficient. Local attorneys may also be 
employed to advantage. They are usually willing to collect on 
a percentage basis. 



CREDITS AND COLLECTIONS 329 

VI. Selling on Sight Drafts or Time Drafts. — This prac- 
tice may not be followed entirely because of fear that the one 
receiving the goods will not be able to pay therefor. However, 
it is the safe system by which to ship goods to persons or firms 
that are not able to satisfy the shipper as to their financial 
responsibility. The smaller creameries are often, when ship- 
ping butter or cheese to commission merchants, making out 
sight drafts for part value and at times when the butter has been 
contracted for at a definite price the shipper will draw a sight 
draft for part or at times for the total value of the products 
shipped. By this method the creamery is receiving cash for its 
products and will require less money for carrying on its busi- 
ness. 

The sight draft when used for such a purpose is attached 
to the bill of lading and is forwarded through the local bank 
to the bank on which it is drawn, this bank being located in 
the city to which the goods are being shipped. The sight draft 
is presented to the consignee for payment who on payment 
thereof receives the bill of lading for goods covered by draft. 

Some shippers, especially shippers of carload lots, make 
all collections on time drafts. These are similar to the sight 
drafts except that they are not payable on sight but payable in 
five, ten, or fifteen days or may be made out for any time agreed 
upon between the shipper and the consignee. Such a draft is 
sent through the bank in a similar manner as the sight draft, but 
when presented by the bank to the consignee the draft is accepted 
by the consignee who in return receives the bill of lading. When 
accepting a time draft the word ''accepted" is written across 
the face of the draft and signed by an officer of the firm ac- 
cepting the draft. The banker who holds the draft will present 
it to ihe consignee for collection the day it becomes due. 



SS'^ 



MANAGEMENT OF DAIRY PLANTS 

FORM XXVII-A 
A Bank Draft 



Pay to Ihe 
order of 



The RoTjaJ No.liona.1 Bcnk no. 
RoyoAFVancc 



'FW 




fi 



-DOLLARS 



ROVM. EXCHANGE BANK 
CF PARIS 



FORM XXVIII 
Sight Drafts 



1^. 



$.60.0*0.0...... ....^ Roya-l, France _.„i>atabar .192.0 

i ...- i. *..t •..X-g.it.t J»Ay lo the order of 

_._" f...tX.B..»..._S..i-t.Jl.AJi_a.a.._B.ji-Q.i.., .... , 

.'_*.T.«. Hoadr« a, »o /l0 .^,, ^ , - , _ , ^ ?«!,...;,. , DOLLARS 

Far % a.a.jOiji..D..V.... r..jB-n..a_fi..r.j..4....1,.a....n.o..t.a.»>..a.r....l..,...l..?.S.C _ 

With Exch&jige And, .Collection .Chains., 

Ta J.a.iLa.....J_o.aj..B._:_ 



IJ>-Z..I.JL^ E_r_9 J)_ft.J 



. 5-l.X.l.lja.jii Jl.o-A_.. 



i} 



$.lfiO<QO Hogcd, France... .flotoi«x...ia, _ _.J92o ,. 

/ 
!..«. «J.-gi..t.,_.a.n_..*..T.j.i..T.«.j, o-jr_-.g.o .ajl.« Poij lo Uw otxJerof 

ZJLZ.«..t....J..«..ta_o..n..iLj._.A.a.Ji-k. _ _ 

.QJL»_AAn.«jr..fJ t J JU. J^-JA / 1 Q-g DOLJiARS 

Tar. bill. ,1,« ding «tt«ohe< 

With DicliaJige and Collection Chorda 

^0-...Ja.h.D....i.J).^L.t.^ t.._C.a-» . ■- 



E.n.x. X.B.^ P_r..».n.«-jt._ 



.».i.ia.i-«j....n.ji.» 



CREDITS AND COLLECTIONS 33 1 

FORM XXIX 
A Time Draft 



1| 

■3 ■ 

*• s 



$ -5Q0.Q0.._.S...m» RoiioJ, FVancc Cptober.Xi 1920 

S3 ss 

O tS 

.•-^_*.gjl-6 l.o.^ji i-l^JuJ; .. Pay to order of 

0-— »?..».i-?_«.t...irj«AXjl.D.«.i..B.«jn.i 

f.l.iii— JOiJ>.4-r-«.-«-,_Bji./-lJlJl. DOLLARS 

Tor \.9.y..9.ys.»...S..9.^..<>.>.9.J. l-B-t.h.^_l_?_?_i3-----_C0JUJ.ogQ 

with Exchange ojid Co! lection Chojgea 

To ..*_«.*. ° J-?.a.s_s * 5.-?_»-_ .... _..._._«._ ._.__ 

.T^_«_r_l_8__t ?_T.*_n.o_»_ I_l Al_i.«_» P_9Ji 



There are four kinds of drafts — "bank drafts," " on demand 
drafts," "sight drafts," and "time drafts." A "bank draft" is 
drawn by one bank on another. An "on demand draft" is 
drawn on one person by another and is payable as soon as pre- 
sented. A "sight draft" is drawn on one person by another; in 
some states it is payable immediately upon presentation, and 
thus becomes an "on demand draft," but in other states it 
becomes payable three days after it has been accepted by 
the person on whom it is drawn. We speak of one, two, three, 
four, or five day sight drafts; then one, two, three, four, or 
five days respectively will be added to the three days of grace. 
If it is written for more than five days it is considered to be 
a time draft. The first three kinds of drafts are considered 
by the bookkeeper as belonging to the cash account, whereas 
the time drafts are considered as bills receivable or bills payable. 

VII. Shipping Goods C. O. D. — The C. O. D. (Cash on 
Delivery) system is made use of for smaller shipments, such as 
when cream or butter is shipped to firms to which credit is not ex- 
tended. By this system the transportation company makes 
collection for the shipper before goods are delivered and the 
shipper will either receive the money or have the goods returned. 



CHAPTER XXIV 
CREAMERY BOOKKEEPING i 

A. DEFINITION AND GENERAL INFORMATION 

Bookkeeping is the science of making a systematic record of 
business transactions. By a business transaction is understood 
an exchange of values. 

I. Systems of Bookkeeping. — The systems adopted by the 
various firms differ greatly so as to meet the needs of the va- 
rious concerns. There are two general systems known in book- 
keeping which include all; these are "Single Entry " and Double 
Entry Systems." 

1. The Single Entry System. — By single entry is understood 
an entry to only one account. This may be a credit or a charge. 
Only personal accounts are affected by this system and the 
books will show no balance and consequently no profit or 
loss. 

2. The Double Entry System. — By double entry is under- 
stood an entry that is made twice. If a credit is made to 
one account a corresponding debit is made to some other 
account. By this system the ledger is kept in balance per- 
petually. 

II. The Ledger. — The ledger is conveniently divided into 
two parts: first, the general ledger; second, the debit ledger. 

I. The general ledger is a book which contains a summary 
of all of a firm's business transactions. It shows its resources 
and liabilities. 



1 It is suggested that students familiarize themselves with "Accounting Records 
for Country Creameries," by Nahstoll, Bulletin No. 559, U. S. Department of 
Agriculture. 

332 



CREAMERY BOOKKEEPING 



333 



FORM XXX 
Debit Ledger 



Name 


/ Juyr2A7JX^^ 












Account No. 


Address /"^rt^aX. ^A^O^Ciy SHrrr No 


DATE ^ 


6'' 1 
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CREDIT 1 


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IS 
20 

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2. The debit ledger, also known as the dealer's ledger, deals 
with personal accounts; it contains all accounts with the firm's 
customers. 

The left-hand side of the ledger is known as the debit and 
the right-hand side as the credit side. The principal rules in 
posting to the ledger are first ''debit what we receive" and 
second ''credit what we give." 

When the credit side of an account in a ledger is the greater, 
then the amount by which the credit exceeds the debit is either 
a liability or a gain. When the debit side of the ledger is greater, 
then the difference is a resource or a loss. 

A personal account is an account with a person, firm, or cor- 
poration. 

A resource is anything of value belonging to the firm. A 
liability is anything that is owed, such as a personal account, 
bills payable, notes payable, etc. 

III. The Cashbook. — The cashbook is a book in which is 
recorded a detailed record of all cash transactions. The left- 



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334 



CREAMERY BOOKKEEPING 335 

hand side of the cashbook is the debit side on which is recorded 
cash received. The right-hand side is the credit side on which 
is recorded cash paid out. All receipts and disbursements may 
be entered in detail in the cashbook; however, that system may 
not be practical to the average creamery. A complete record 
should be made in detail of all receipts. Cash sales for the day 
may be entered as one item. By adhering to the system out- 
Hned in the following it becomes possible to materially reduce 
the number of entries to be made in the cashbook. 

A petty cash record may conveniently be kept in many dairy 
estabhshments where small sums of money are paid out daily in 
the form of cash. By that system a check should be drawn 
crediting cash and debiting petty cash. 

IV. The Check Register. — The check register is a record of 
all checks issued. Checks should be drawn for all money paid 
out, and the check register should therefore check with the pur- 
chase record. No itemized record needs to be made of the milk 
and cream pay roll, but one entry should be made daily of the 
total amount paid for milk and cream. The check register 
should also at all times show the bank balance. The stub of the 
check book may be satisfactorily used, thus eliminating a spe- 
cial form of check register. 

B. RECORD OF PURCHASES 

I. Milk and Cream Purchases. — Milk received at a whole 
milk creamery is recorded on a blank known as ''the milk 
receiving record." It is not transferred to any other form of 
record before payment is made, when it may be transferred to 
the general purchase record as one single item of milk purchased 
for the period. Creameries receiving cream are forced to keep 
more detailed records as each separate lot of cream is tested 
and the butter fat calculated. Cream collected on routes 
may be recorded on a driver's report blank (Form IX, 
p. ii8). The entire load of cream collected by a driver is at 
the creamery recorded on the daily cream receiving record 
(Form VIII, p. 113), and a special route checking record (Form 



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336 



CREAMERY BOOKKEEPING 



337 



X, p. iig), is kept of losses or gains sustained from each route 
operated. 

The accounts of the individual patrons are daily transferred 
from the cream receiving record and from the driver's reports to 
the patrons' statements. These are often attached to the check 
blanks and are filed alphabetically in a loose-leaf binder. When 
time for making remittance, the statement with check properly 
made out is delivered to the patron. A duplicate (a plain sheet 
of cheap paper may be used for this purpose) is kept for refer- 
ence and filed alphabetically and divided numerically in accord- 
ance with date of payment. 

FORM XXXIII 

Patrons Statement and Check 



'Royal drtomrry Co. 

f?OTAl_ FRANC L 



Pay to thc 

ORDER OF 



^ 



y.Ccr-c/v^^ -So 



<r?u^y 



RovAL. F»7ANf.r, TTT^^j'/.^y /9/9 



DOLLARS 



FPOYAL CREAMERY CO. 



F?OYAL CREAf 



'TtAff orr ocroffC FWC5CNTINO roK fwvmcnt' 

NOTICE Check hereto attached is in povment of the followinq .tems. If incorrect, 
return at once w,th check. ^OYAL CREAMERY CO 




SCORE 


LOacRtAn 


TKT. 


LBS. FAT 


PRICE 


AnOUNT 


MERCHANDISE PURCHASED 


MAULINO 




ITEMS 


AMOUNT 


TVcvuiA/ 


92 


as 


32 


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Labor is saved by having statement and check attached, as it 
becomes necessary to write the name of a patron only once, 
whereas, if separate, the name should be on the statement, on 
the check, and on the check register. Furthermore it should be 
noted on the check register the item for which the check was 



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33« 



CREAMERY BOOKKEEPING 339 

issued. That information is by this system contained on the 

dupUcate. ^^^, , 

As will be noted, the statement (Form XXXIII) also answers 
the purpose of a patron's ledger, and the bookkeepmg is thus 
materially facilitated and it assures prompt payment for mer- 
chandise purchased by the creamery patrons. 

II Forms of Purchase Records. — The purchase record 
may for the sake of convenience be divided into two forms, one 
containing an itemized record of purchases and the other a sum- 
mary of daily purchases. , . • 

An itemized record of purchases is kept so the one who is m 
charge of purchases may be enabled to know when orders for 
goods were placed, when such goods were received, and when 
paid for. Such a record is convenient to refer to at various 
times and particularly when closing the books at the end ot 
each month. A glance at this report will give information as to 
whether the goods inventoried at the close of the month have 

been paid for. . r n 

The monthly purchase record furnishes a record of all pur- 
chases made during the month including all items which have 
been paid, such as labor, insurance, interest, depreciation, etc. 
Entries may be made on the monthly purchase record when- 
ever payments are made, or not later than the last day of 
the month for all goods, labor, etc., received during the 

""ill Record of Depreciation. — Depreciation and similar 
items' the amounts of which are paid back to the tirm may be 
treated the same as any account payable and a check issued 
payable to the firm by which issed. This amount, as in case o 
depreciation, is credited to the plant and equipment account 
and charged against the expense accounts of the departments 
The advantage in issuing a check for the amount is that Ae 
amount of checks issued should equal the total amount of the 

^"■The'' general ledger should always contain a complete record 
of depreciations. Consider, for example, the equipment ac- 
count the cost of the equipment should be entered on the debit 



340 



MANAGEMENT OF DAIRY PLANTS 



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CREAMERY BOOKKEEPING 34I 

side of the ledger while the amount depreciated is entered on the 
credit side. Suppose the value of the equipment January ist 
is $3,000 and that a depreciation of $50 per month is allowed; 
then the equipment will at the close of the year show a value 
of $2,400, provided no new equipment was added during the 
year. If equipment to the amount of $300 was added, then 
the equipment account will show a value of $2,700. The 
amount depreciated should represent the actual loss due to wear, 
breakage, etc. 

A creamery operating routes with its own teams and wagons 
should keep a similar ledger account of the horses, wagons, and 
harness. If several departments are operated by the same 
creamery, such as ice cream, butter, and cheese departments, 
then a separate ledger account should be kept of the equipment 
for each separate department. If the creamery owns its own 
building, a building account should be carried, etc. The ob- 
ject is that the record should always be complete enough so that 
the management at all times will have a correct idea of the assets 
and liabilities of the enterprise. 

C. RECORD OF SALES 

A complete monthly record should be kept of all sales. Such 
record should be complete enough to furnish information 
about cash and credit sales, sales to patrons, and consignments. 

I. Cash Sales. — Such are sales for which cash is received 
upon the delivery of the goods. The only record necessary to 
keep of such sales is the original sales ticket (Form XXI, p. 239) 
and a total of the day's cash sales is recorded on the sales 
record. 

II. Credit Sales. — Credit sales are recorded on the same 
forms as cash sales; in addition thereto an entry of each per- 
sonal credit sale is made to the debit ledger (Form XXX). 
After the daily entries have been made to the debit ledger the 
sum of the entries for the day should be taken and should check 
with the total credit sales as recorded on the sales record. 

III. Sales to Patrons. — Although these are credit sales they 
are recorded separately as, instead of being entered on the debit 



342 MANAGEMENT OF DAIRY PLANTS 

ledger, they are entered on Form XXXIII and remittance for 
such sales are made when the amount is being deducted from 
amount due the patron for milk or cream. A ticket such as 
Form XXIV is usually presented for such sales instead of the 
general sales ticket. 

IV. Consignments. — Goods disposed of on consignment 
may cause some confusion as the remittance is made later 
and there is usually some shrinkage in weight from the time 
the butter leaves the creamery until it is sold. The price 
is also likely to change. The writer has found it most satis- 
factory to make a sales ticket for such shipment the same 
as for butter sold locally, figuring actual weight the day of 
shipping and calculating the value on the same basis as that of 
butter sold to local merchants. This entry is made on the sales 
record. Another entry is made thereon when remittance has 
been received. This record is of value to the creamery, also for 
the reason that if the creamery is losing too much on butter 
sold on commission, it may be advisable to establish local mar- 
kets for the entire output. 

D. RECORD OF INVENTORY 

I. Monthly Record of Inventory. — If the monthly sales 
constitute the sales of the product manufactured from the 
monthly receipts of raw material, no more nor less, and if the 
material on the purchase record includes such purchases as are 
made only for the month's business, then the difference between 
the total monthly sales as recorded on the sales record and the 
total monthly purchases as recorded on the purchase record 
equals profit or loss. This method, however, is impracticable 
in business and therefore it will be necessary to consider the 
monthly inventory when making out a report of monthly profit 
and loss. 

The monthly record of inventory is furthermore of value for 
the following reasons: 

1. For determining the amount of supplies used during the 
month. 

2. As a guide for placing orders for supplies. 



CREAMERY BOOKKEEPING 



343 



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344 



MANAGEMENT OF DAIRY PLANTS 



3. As a record in case of fire loss. 

4. As a check record on waste of supplies. 

FORM XXXVII 

BUTTER DEPARTMENT 

Inventory — Month of May 



Item 


On hand May i 


Purchased 


On hand June i 


A mount 


Value 


Amount , 


Value 

150.00 
56.00 

56.00 

4.00 

15.60 

40.00 

6.00 
3.90 
3.00 

12.50 

347 . 00 
72.00 


Amount 


Value 


Butter tubs 

Butter boxes .... 
Tub liners com- 
plete 

Box liners 

Butter wrappers 

Butter color 

Salt 

Thermometers. . . 

Can brushes 

Floor brushes. . . . 
Acid 


152 
20 

200 

150 

1,000 

10 gals. 

4 bbls. 

24 

4 

1 

2 gals. 
6>2 gals. 

4 gals. 
1,000 

5 bbls. 


76.00 
5.60 

11.20 

1.50 

1.56 

40.00 

16.00 

24.00 

2.00 

.65 

1.20 

6.50 

1.80 

2.50 

70.00 


300 
200 

1,000 

400 

10,000 

10 bbls. 

12 
6 
5 gals. 

5,000 


147 
152 

920 

450 

6,500 

73/4' gals. 
8 '< bbls. 
21 
12 
5 

1 gals. 
lyi gals. 
4K gals. 
4,750 

zyi bbls. 


73 . 50 

42.56 

51.52 

4.50 

10.14 

31.00 

34.00 

21.00 

6.00 

3.25 

0.60 


Separator oil ... . 

Engine oil 

Tub tins 

Washing powder . 


2.50 

2.02 

11.87 

49.00 


Total for supplies 
Coal on hand. . . . 
Butter on hand . . 


IM tons 
4,078 lbs. 


260.51 

6.00 

2,854.60 

2,860.60 


18 


6 
47,121 lbs. 


343.46 

24.00 

2,827.20 


Total 






419.00 




2,851.20 



The manufactured products, such as butter and ice cream, 
may or may not be included on the monthly record of inventory, 
but if not included then record of such products should be found 
on a daily inventory record. 

11. Daily Record of Inventory. — This record is primarily of 
value for checking the stock of manufactured goods as well as 
stock of raw material on hand. Such reports should be available 
for the manager daily and may be in form of a card as Forms 
XXXVIII and XXXIX, or on a large record sheet combined 
with a daily manufacturing report as Form XL. 



CREAMERY BOOKKEEPING 



345 









FORM 

STOCK 


XXXVIII 

RECORD 

Date 








Butter 


niscBu+ter 


Cream 


riiik 


Cheese 


Ice Cream 


nisei. 


Inventory 
















Manufactured 
















Received 
















Gains 
















Transferned 
















Total 
















Tnansfemed 
















5old 
















Loss 
















1 nventory 

















































































Form XXXVIII is a general form which may be used for the 
entire stock in the various departments while Form XXXIX is a 
department inventory record; the latter containing a record of 
the manufactured product as well as of milk and cream handled 
for the manufacture of ice cream. 

The inventory recorded as last item on Form XXXVIII is the 
inventory taken of the goods in the stock room. If this in- 
ventory does not tally with the theoretical inventory then there 
is a gain or a loss in the stock on hand and such gain or loss is 
recorded on report. 

E. PROFIT AND LOSS 
I. Monthly Report. — The creamery business is of such a 
nature that it is difficult to estimate profit or loss daily; the 
prices are changeable, so is the margin of profit, operating ex- 
penses, losses, etc. Therefore a complete report of profit or loss 
should be available monthly. Larger plants are even known to 
estimate the profit or loss for the month at the beginning of the 
month. This estimate is then at the close of the month checked 
against the monthly report. An estimate is readily prepared of 



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CREAMERY BOOKKEEPING 



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348 IVIANAGEMENT OF DAIRY PLANTS 

the coming month's business by comparing expenses, output, 
etc., with that of the corresponding month of previous years. 
This is a valuable method for guarding against losses, and it is 
known that large companies have made good returns by adopt- 
ing this system. 

Records from which the figures are obtained for the profit and 
loss report are the purchase record, the sales record, and the 
monthly inventory record. 

FORM XLI 

Statement of Profit and Loss for May 
Butter Cr. 

Butter sales, 18,718 lbs $11,979.52 

Buttermilk sales 41.00 

Steam sold to ice cream department 20.00 

Butter on hand, June ist, 4,712 lbs 2,827.20 

Coal on hand 24.00 

Factory supplies on hand 343-46 

Ofifice supplies on hand 24.50 

$15,259.68 

Dr. 

Butter on hand, May ist, 4,078 lbs $ 2,854.60 

Coal on hand, " " 6.00 

Factory supplies on hand. May ist 260.51 

Office supplies on hand " " 18.00 

Milk and cream purchased 11,195.14 

Factory supplies purchased 347-oo 

Office " " 10.00 

Coal purchased 72.00 

Power " 20,00 

Drayage 15.00 

Rent 30.00 

Labor 200.00 

Ice 7.50 

Repairs 1500 

Interest and insurance iQ-So 

Depreciation 30.00 

Loss on consignments 46.48 

Profit for May 112.9S 

$15,259.68 



CREAMERY BOOKKEEPING 349 

FORM XLII 

Ice Cream 

Cr. 

Ice cream sales S 2,42 1 .00 

Ice cream on hand, June ist 108.00 

Milk and cream on hand, June ist 85.00 

Supplies on hand, June ist 260.00 

$ 2,874.00 

Dr. 

Ice cream on hand, May ist $ 63.00 

Milk and cream on hand, May ist 76.00 

Supplies on hand, May ist 40.76 

Milk and cream purchased 1,619.80 

Factory supplies purchased 284.24 

Office supplies i5-oo 

Power 10.00 

Drayage 60.00 

Rent 15.00 

Labor 1 50.00 

Ice 101.20 

Repairs 10.00 

Insurance and interest 10.20 

Depreciation 25.00 

Steam from butter department 20.00 

Profit for May 373-8o 

$ 2,874.00 



The total monthly profit or loss should be entered in the 
general ledger, which will serve as a permanent record. A se- 
parate ledger leaf is used for each year. The monthly profit and 
loss report, the same as other important records, should be filed 
so it may be available for future reference. For this purpose a 
loose-leaf binder is most satisfactory. 

II. Financial Statement. — The financial statement is a 
summary of the firm's resources and liabilities and as such it 
shows the financial condition of the firm. The monthly state- 
ment of profit and loss should be checked against the financial 
statement. The monthly statement may be considered correct 



350 MANAGEMENT OF DAIRY PLANTS 

if the resources of the firm show an increase above the liabilities 
equal to the monthly profit. 

FORM XLIII 
Financial Statement June ist 

Resources 

Plant and equipment $15,120.00 

Butter on hand 2,827.20 

Ice cream on hand 108.00 

Milk and cream on hand 85.00 

Coal on hand 24.00 

Supplies on hand, butter department 367.96 

" " " ice cream *' 260.00 

Accounts receivable 3,295.02 

Bank balance 669.77 

Money on hand in office 52.15 

$22,855.60 

Liabilities 

Capital stock $15,000.00 

Due patrons for milk and cream 660.50 

Bills payable 370.67 

Notes payable 5,000.00 

Undivided profit previous to May 1,291.20 

Profit for May 486.75 

$22,855.60 

At the close of the year, plant, fixtures, etc., should be re- 
valued, uncollectible accounts and notes should be charged off, 
and the new year should be begun with figures representing the 
actual value of the resources. 



INDEX 



Absorption refrigeration, 8i 
Acidity of cream, loi, 210 
Active custumers, 233, 237 
Active patrons, 106 
Advertising, 26, 281 

advertising manager, 294 

appropriation for advertising, 291 

booklets, 298 

circular latters, 297 

creamery, 299 

essentials, 287, 301 

exhibits, 299 

mailing cards, 297 

medium for advertising, 294 

newspapers and magazines, 294 

novelties, 298 

planning and writing, 293, 299, 

306 
"policy " advertising, 286 
programs, 299 
purposes of advertising, 282 
scrapbook, 306 
signs and billboards, 296 
street railway cards, 297 
tools of advertising, 302 
Aging creams, 220 
Air lift, 161 
Ammonia, 68, 69, 78 
Ammonia condenser, 70, 76, 78 
atmospheric condenser, 78 
double-pipe condenser, 78 
Ammonia compressor, 70, 72 
double acting, 75, 76 
single acting, 75 



Application blank, 84, 85 
Articles of incorporation, 14, 19 
Artificial cream, 209 
Artificial extracts, 214 
Asphalt, 28, 30 
Australian butter box, 274 

Bacteria in cream, 211 
Bacteria in ice cream, 218 
Bad accounts, 261 
Bank draft, 329, 331 
Banking facilities, 6 
Bell trap, 41 
Berries, 215 
Bills, 127 
Bill boards, 296 
Blackberries, 215 
Boiler, 138, 157, 164 
Boiler losses, 134 
Bonds, 91, 166 
Bookkeeping, 332 

cashbook, 333 

check register, 335 

depreciation, 339 

financial statement, 350 

inventory, 342 

ledger, 332, 337, 339 

patron's statement, 337 

profit and loss, 345 

purchase record, 335 

sales record, 341 

systems, 332 
Booklets, 298 
Bottling cost, 260, 264 



351 



352 



INDEX 



Bourbon vanilla bean, 212 
Bradley box, 275 
Bradstreet agency, 320 
Branded butter, 250 
Brici, 31, 33, 34, S3 
Brine method of refrigeration, 70 
Brine table, 72, 73 
British thermal imit, 50 
Broker, 199, 235 

Building, 5, 8, 33, 120, 164, 232, 
299 

chimney, 35 

floor, 9 

foundation, 31, 36 

frame building, 31 

location, 8, 9 

painting, 37 

roof, 36 

ventilation, 38 

walls, 9, 31, SI 

windows, 9, 53 
Butter, 236, 245, 250, 272 
Butter barrel, 275 
Butter box, 272 
Butter fat, 170, 181, 185 
Butter grades, 246, 249 
Butter maker, 90, 93, 95 
Butter printer, 278 
Butter tins, 276 
Butter tub, 273 
Buying supplies, 123 

contract, 125 

cash discount, 1 26 
By-laws, 16, 19 

Cans, 112, 115, 164 
Capital stock, 17, 19, 22 
Carbonic acid, 68 
Card records, 106, 237 
Cash book, 333 
Cash sales, 341 



Cash system, 103, 261 
Catch basin, 42 
Cement, 30 
Cement block, 31, 34 
Cement floor, 28 
Certificate of stock, 18 
Cesspool, 43 

Checking routes, 117, 243 
Check register, 335, 336 
Checks, 103, 237 
Cheese, 231, 236, 253 
Cherries, 215, 217 
Chimney, 35 
Chocolate, 217 
Chocolate sirup, 218 
Cinders, 56 

Circular letter, 238, 297, 317 
City delivery, 256 
Clearance, 80 
Coal, 131 
Cocoa, 217 
C. O. D. sales, 331 
Collecting agencies, 328 
Collections, 325, 327 
Collector, 327 
Commercial agencies, 320 
Commission merchants, 235 
Commission sales, 235, 242, 342 
Common stock, 17 
Competition, 4, 5 
Composite samples, 117, 191 
Composition of butter, 170 
Condensed steam, 144 
Conduction of heat, 50 
Convection of heat, 49 
Coolers, 148, 156 
Cooling, 147 
Cooling tank, 72 
Cooling water, 148 
Cooperative creamery, 5, 7, 18, 165 
advantages, 21 



INDEX 



353 



Cooperative capital stock, 19 

dividends, 19 

membership, 20 
Cooperative cream hauling, 114 
Cooperative cream selling, 122 
Cooperative selling agency, 236 
Copartnership, 1 1 

dissolution, 13 

formation, 11 

liabilities, 12 

partners, 12 
Cork, 56 
Corporation, 14 

advantages, 14 

capital stock, 17 

certificate of stock, 18 

liabilities, 1 7 

officers, 16 
Correspondence, 309, 327 

body of letter, 313 

filing, 318 

form letter, 317 

parts of letter, 312 

stationery, 309 
Cost 

advertising, 292, 294 

bottling milk, 259, 264 

buttermaking, 3, 198, 247 

cooling, 147 

delivery, 256, 260, 264, 266 

electric power, 141 

fruit sirups, 216, 217 

gasoline for power, 140 

homogenization, 209 

ice, 81, 223 

ice cream making, 203, 221, 
222 

kerosene for power, 141 

labor, 95, 96, 148, 201, 222, 259, 
269 

lemon extract, 214 



Cost of marketing butter, 199, 200, 
234, 245 

marketing cheese, 253 

marketing ice cream, 254 

marketing milk and cream, 258, 
261, 267 

mechanical refrigeration, 80 

overhead expenses, 261, 264 

pasteurization, 143, 149 

power, 223 

printing butter, 279 

roofs, 36 

routes, 114, 234 

raw material, 203, 258, 265 

re-icing ice cream, 257 

salt, 223 

simple sirup, 218 

shipping ice cream, 254 

steam, 131, 140, 143 

vanilla, 212 

water, 158, 162 
Cream, 102, 116, 204, 210, 220, 

234, 258 
Cream buyer, 122 
Creamery construction, 24 
Cream-receiving station, 5, 120 
Credit information, 320, 323 
Credit man, 319 
Credit men's ass'n, 321 
Creditors, 13 
Credit sales, 341 
Curd in butter, 180 

Daily records, 107, 113, 202, 270 

Danish firkin, 277 

Day-wage, 92 

Dead air space, 34, 54 

Debts, 12 

Delinquent custumers, 326 

Demonstrations, 299 

Density of water, 145 



354 



INDEX 



Depreciation, 164, 339 
Direct expansion, 70 
Directors, 16, 19, 90, 91, 236 
Discootinaed custmners, 237 
DiscGntinaed patraos, 106, 107 
Distributing milk, 260, 264 
Dividends, 17, 19, 22 
Donnant partner, 12 
Dosing diamb», 44, 46 
Double acting compressor, 75, 76 
Double entry, ^,^2 
Drafts, 329 
Dan Ageny, 320 



Floor, iSj ^Sf ^ 

asphalt, 30 

cement, 28 

plank, 30 

stone and tile, 30 
Follow-up s>'stem, 104 
Food value of dair>' products, 183 
Foot pound, 134 
Foundation, 31, 36 
Freezing ice cream, 220 
Friction head, 159 
Fruit, 215 
Fuel, 131, 132 



Earthem jars, 275 
Electric power, 141 

Employees, S4, 90 
Envelope, 310 
Equipment, 123, 148 
Exclusive ageno.-, 234 
Exhaust steam, 135, 138 
Exhibits, 299 
Expansion coil, 70 
Expansion valve, 70, 78 

Factory school, 88 

Feed water, 135 

Feed water heater, 138 

Fifing, 106, 127, 318 

Fillers for ice cream, 218 

Filter bed. 44, 46 

Financial statement, 322, 349 

Fire brick, 35 

Fire clay, 35 

Filing, 138 

Ffcwcring extracts, 211 

lemon, 213 

Ofange, 214 

vaniHa, 211 
FktvcNrs in cream, loi 
Floor plan, 9, 24 



Gasoline, 140 
Gasoline engine, 140 
Gelatin, 218 
Gem liber box, 275 
Glymol, 194 
Good will, 164, 282 
Grading cream, 100, 102 
Gra'vit>'-brine refrigeration, 62 

Half tone, 305 
Hauler, 94, 115, 116 
Hauler's report, 118 
Heat, 133 

Hollow tile, 31, 33, 34 
Homogenization, 208 
Horse power, 134, 157 

Ice, 62, 64, 81, 117 

Ice bunker, 58 

Ice cream, 203, 231, 234, 254 

Ice cream containers, 221 

Ice cream freezers, 72 

Ice house, 58, 60, 63, 64, 67 

Ices, 214 

Illustrations, 303, 305 

Incorporators, 15 

Ink, 310 



DvDEX 



355 



Insulated ice bouse, 60 
Insulatioii, 49 

construction, 54 

material, 51 

piping, 140 
Insurance, 165 

employers' liabilit>' iasurance, 166 

fidelity* insurance, 166 

fire insurance, 166 
Interest, 165 
Inventor>% 128, 342 
Invoices, 127, 240 

Jobber, 199, 200, 235 
Joint-stock co., 21, 165 

capital, 22 

di^^dends, 22 

stockholders, 21 

Kaosooe, 141 

Kotwene engine, 141 
KDowatt, 141 

Labor, 84, 201, 222 

cost of labor for pastemization, 
148 

day- wage, 92 

distributing cost of labor, 96 

hiring the employees, 84 

non-productive labor, 92, 96, 97 

organization of labor, 89 

piecework, 93 

premium and percentage, 93 

productive labor, 92, 95 

prompt pay, 94 

reducing cost of labor. 95 

suret>- bond, 91 

time keeping, 95 

training the employee, 87 
Latent heat of fusion, 51 
Latent heat of vaporizatSoB, 69 



Laundr\', i 

Liabilities, 12, 13, 17, 333, 350 

Lintels, 35 

Lith, 58 

Losses 

bad accounts, 261 

boiler, 134, 140 

butter, 196, 243 

bolter fat, 117, 181, 185, 186, 195 

butter milk., 185 

equipment, 224 

heat, 133, 134, 135 

ice, 64, 66 

ice cream, 221, 224 

mechanical losses in butter mak- 
ing, 186, 188 

pasteurization, 152 

power, 134 

refrigeration, 54, 64, 80 

salt, 176 

samples, 190 

gjlrim mflk , i8l 
surplus milk, 260 

testing. 180, 192 

waste at milk plant, 260 

water, 159 

v ":' '' iSS, 190 

Lo}- 

Magaanes, 294 

MaiTtng cards, 297 

Manager, 10, 90, 91, 229. 232, 236 

Manufacturing costs, see "Costs." 

Manufacturing records, 202, 222, 

547 
Maps, 1 04, 233 
Marketing, 226, 231 
commission sales, 235 
co6p>eratr^'e selling agency, 236 
local martfts, 5. 232 

mSk. plant, 237 



356 



INDEX 



Marketing records, 237 
Mechanical losses of butter fat, 

181, 195 
Mechanical refrigeration, 68 

absorption system, 81 

compression system, 69 
Mexican vanilla bean, 211, 213 
Milk, 23, 231, 234, 236, 237, 258 
Mineral wool, 56 
Minor, 12 

Moisture control, 176 
Moisture in butter, 171 
Molding ice cream, 221 
Mortar, 30 
Motors, 142 

Natural refrigeration, 58 
Newspapers and advertising, 294 
Nominal partner, 12 
Nonproductive labor, 92, 96 
Novelties, 298 

Ofl5cers, 16, 19 

Oil trap, 138 

Oleomargarine, 249 

Orange extract, 214 

Order clerk, 324 

Originality in business, 87 

Ostensible partner, 12 

Overhead expenses, 258, 261, 264 

Overrun, 168 

butter overrun, 168, 183, 186, 195 
ice cream overnm, 204, 218 
per cent overrun, 169, 218 
■ value of overrun, 170 

Package, 272, 288 
Painting, 37 

enamel paint, 37 

priming, 37 
Parafiner, 273 



Pasteurization, 143, 210 

cost, 149 

flash method, 146, 149 

holding method, 146, 150 
Pasteurizers, 150, 156 

efl&ciency, 152 

purchasing a pasteurizer, 156 
Patrons, 22, 103, 337 

active, 106 

discontinued, 106 

prospective, 106 
Patron's sales ticket, 242, 341 
Patron's statement, 337 
Peach, 215 

Percentage system for labor, 93 
Perpetual succession, 15 
Piecework, 93 
Pineapple, 215 
Pine wood, 52 
Piping for refrigerator, 72 
Piston pump, 161 
Plastering, 35 
"Policy" advertising, 286 
Potassium chromate, 1 79 
Power, 131, 209 

electric power, 141 

gasoline power, 140 

kerosene power, 141 

steam power, 131, 140 
Preferred stock, 17 
Premium system for labor, 93 
Preparing butter tubs, 274 
Print butter, 278, 280 
Process butter, 249 
Productive labor, 92, 95 
Profit and loss report, 348 
Programs, 299 
Promotion, 282 
Proprietary plant, 4, 5, 7 
Prospective custumers, 233, 237 
Prospective patrons, 106 



INDEX 



357 



Purchase of milk and cream, loo, 

335 
cooperative cream selling, 122 

cooperative hauling, 114 

cost, 258 

cream buyer, 122 

cream route, 114, 119 

cream station, 120 

follow-up system, 104 

grading, 100 

individual delivery, 108 

records, 338 

shipping, 109 

Quality, 100, 287 
Quick assets, 5 

Radiation of heat, 49 
Railroad facilities, 8 
Raspberry, 215 
Raw material, 2, 21, 22, 203 
Real estate, 16 
Receiving record, 126 
Refrigeration, 49 

cost, 80 

insulation, 49 

mechanical refrigeration, 68 

natural refrigeration, 58 
Refrigerator, 59, 64 
Refrigerator butter carrier, 273 
Regenerator, 148 
Rent, 163 
Repairs, 165 
Resources, 333, 350 
Retailer, 199, 200, 232, 247 
Retail sales, 222, 223, 232, 247, 258, 

264, 265 
Richness of cream, 102 
Roof, 36 

flat roof, 36 

gravel roof, 36 



Roof, pitched roof, ^il 
prepared roofing, 36 
tin roof, 36 

Rotary pump, 161 

Routes, 105, 114 

Route sheet, 244 

Rural business, 7 

Salesman, 226, 233, 286, 324 

Salesmanship, 226 

Sales record, 239, 341, 343 

Sales ticket, 239, 241, 242 

Salt control, 176 

Salt in butter, 174 

Salt test, 178 

Sandstone, 53 

Sanitation, 8 

Sawdust, 54 

Scales, 188 

Score card for cream, loi 

Seals, 16, no 

Septic tank, 8, 44 

Sewage disposal, 40 

catch basin, 42 

cess pool, 43 

septic tank, 44 

sewer system, 40 

sewer traps, 41 
Shavings, 54 

Shipping cream, 109, 121 
Shipping ice cream, 224, 254 
Shipping-tags, no, 225 
Shrinkage in butter, 196 
Sight draft, 6, 329 
Signs, 296 
Sills, 35 

Silver nitrate, 178 
Simple sirup, 217, 218 
Single acting compressor, 75 
Single entry, 332 
Sinking fund, 20 



358 



INDEX 



Siphon trap, 42 
Skim milk, 181 

formula for fat loss, 182 
Smoke bridging, 35 
Solid-packed butter, 277 
Special partner, 12 
Specific heat, 65 
Standardization of cream, 204 
Statement, 241 
Stationery, 309 
Station report, 120 
Steam, 131, 133, 143, 144 
Steam engine, 140, 164 
Stock clerk, 128 
Stockholders, 16, 17, 23 
Stock record, 344, 345, 346 
Storing butter, 199, 250, 251 
Storing cream, 210 
Storing fruit sirup, 215 
Strawberry, 215, 216 
Street-railway cards, 297 
Sugar, 211 

Sulphuric dioxide, 68 
Superintendent, 87, 90, 91 
Supplies, 123, 127, 128, 344 
Surplus milk, 261 
Sweet butter, 175 

Tahiti vanilla bean, 212, 213 
Testing, 189 

artificial extracts, 214 

glassware, 189 

reading tests, 192 



Testing samples, 190 

Time draft, 329 

Time keeping, 95 

Trade-mark, 250, 283, 289, 290 

Transferring correspondence, 318 

Treasury stock, 18 

Type, 303, 304 

Unsalted butter, 175 

Vacancies, 16 
Vanilla bean, 211 
Vanilla extract, 211 

preparation, 212 

standard, 212 
Ventilation, 38 
Vestibule, 54 

Walls, 9, 31, 51, 56, 57, 60 
Waste, 260 
Water, 158 
Watered stock, 18 
Water pumps, 160 

air lift, 161 

piston pump, 161 

rotary pump, 161 
Wholesale milk, 264, 267 
Windows, 9, 53, 62 
Working capital, 5, 6 
Wrapping butter, 279 

Zinc etchings, 305 



Printed in the United States of America 



